Single platform use should not threaten independence - advisers

Research undertaken via NMG's Financial Adviser Census in October found that 49% of 215 IFAs asked said they do not accept that the use of a single platform threatens independence.

A further 39% expressed a similar view over the use of a single investment proposition.

The regulator said in July that it had found evidence of firms describing themselves as IFAs which were either placing "almost all" business with one platform or had a pre-determined list of products or investments.

The FCA has previously expressed the view that it is possible, though unlikely, for firms to use a single platform for all clients and still refer to themselves as independent.

NMG director David Burns said: "The past few years have seen a transformation in adviser business models with many firms no longer wedded to traditional views on independence. Many view platforms as providing no more than administration and simply do not accept that reliance on a single platform compromises their independence.

"The rapid growth in centralised investment propositions reflects a sea change in attitudes with many IFAs now questioning whether they can, or ought to, hold themselves out as quasi fund managers, designing and managing individual bespoke portfolios."

Just over one-third of IFAs would be willing to consider a move to a restricted advice model were the FCA to give explicit guidance that a firm that uses a single platform could not hold itself out as being independent, while 30% would also consider moving to restricted advice if the FCA took a similar stance on firms offering a single, centralised investment proposition.

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• Topics
• Wrap/platforms
• NMG
• wrap platforms
• IFA