FSA questions advisers' motives towards wrap

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The Financial Services Authority has raised concerns some intermediaries are treating wrap platforms as an excuse for searching out short-term sources of funding without any consideration for building value in the longer term.

Speaking at the PIMA conference last week, Bruce Robson, manager of the asset management sector team at the FSA, said there is a growing excitement about platforms in the industry and he recognised their potential for supporting providers and distributors’ businesses. But, he adds: “Platforms, or some forms of them, could be an excuse for searching out new, short-term sources of funding, without any consideration for how they are going to build value into their business in the longer term.” Robson says some firms see platforms as a way of taking more commission without offering additi...

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