Financial concerns steer larger advice firms away from in-house platforms

Its Next Platform Shakeout report included interviews with chief executives, chief operating officers, or heads of financial planning in firms with more than 50 financial advisers and asked them about the reasons why they had or had not decided to become a platform operator. It found that firms did not think operating an in-house platform would make-up for the required investment and risk. Meanwhile, some interviewees suggested they may take the plunge in due course but would let others test the model first. One respondent said: "Why would we try to gain five bps on a platform and ...