More and more international adviser businesses are following in the footsteps of their UK, US and Australian counterparts by embracing platforms as an efficient means to manage and deliver their investment propositions.
With the number of platforms available in the international space increasing rapidly, the question is: which is the right one to support your business?
To complicate matters, much has recently been made of the fragile state of the sector – there are too many players, it lacks profitability, platforms are up for sale and struggling to find buyers – with alarmists and black hats sparing no ink to paint the pic-ture of imminent demise for many firms in the industry, either by consolidation or outright failure.
Best selection
So, how do you select a platform to use and how can you be certain it will be around to support your business in the future?
Not all platforms are the same – there are transactional platforms, wrap platforms and now separately managed account (SMA) platforms. Some will support you in managing and delivering your investment proposition; others offer a truly integrated solution to support your whole business.
Navigating the choices is complicated by the fact that most of the platforms are based on the software of just a few providers – many Australian. This makes platforms virtually indistinguishable from each other. But we believe that the adviser landscape is poised for a step change and that an SMA platform is a strong solution for adviser firms seeking to transform their businesses.
SMA technology is already a trillion dollar market in the US and growing strongly in Australia, the UK and globally. It helps adviser businesses to adapt to the changing expectations of investors and the pressures of regulatory change, while creating operational efficiencies.
SMA technology is a scalable, transparent and efficient way to run discretionary portfolios, and it is beneficial for investors and advisers alike. As it takes hold in the UK and international markets, we are confident SMA platforms will provide considerable competitive advantage to adviser businesses.
