Platform (and Advice) Charge - How does this sound...?

[JulianPH]

Cheib said:

I'd doubt there claims of £20bil of assets within three years...the Platform market has had many new entrants over the last few years whose main selling point has been price....how many of them have got anywhere near that number ? To reach £20 bil of assets that probably means you'd actually need to get circa ££750 mil to £ 1bil of new client money monthly for three years as obviously people draw on pensions etc.

They are doing it at institutional levels, not going to the man/woman on the street.

They have just (yesterday) been reported in the press as doing a distribution deal with IFSL, with the first sign up being Tenet Group. There are many others following.

http://citywire.co.uk/new-model-adviser/news/tenet...


The mainstream platform are all spending hundreds of millions bringing their platform tech up to date. Hubwise is already at the next generation level today and with IFSL they can now turn portfolios into OEICs on the platform. Next generation platforms are a world away from what we are used to now.

[Cheib]

JulianPH said:

Cheib said:

I'd doubt there claims of £20bil of assets within three years...the Platform market has had many new entrants over the last few years whose main selling point has been price....how many of them have got anywhere near that number ? To reach £20 bil of assets that probably means you'd actually need to get circa ££750 mil to £ 1bil of new client money monthly for three years as obviously people draw on pensions etc.

They are doing it at institutional levels, not going to the man/woman on the street.

They have just (yesterday) been reported in the press as doing a distribution deal with IFSL, with the first sign up being Tenet Group. There are many others following.

http://citywire.co.uk/new-model-adviser/news/tenet...


The mainstream platform are all spending hundreds of millions bringing their platform tech up to date. Hubwise is already at the next generation level today and with IFSL they can now turn portfolios into OEICs on the platform. Next generation platforms are a world away from what we are used to now.

So they're signing up individual IFA's for their book of business ? I'd still stick with my doubts about how long it will take them to get to that scale. Although I'd admit £500 mil in 12 months is a very good start! I've no idea about your point about turning portfolios into OEIC's though...so maybe that's the USP ?

There are plenty of other platforms that target IFA's exclusively aren't there ?

[JulianPH]

Cheib said:

So they're signing up individual IFA's for their book of business ? I'd still stick with my doubts about how long it will take them to get to that scale. Although I'd admit £500 mil in 12 months is a very good start! I've no idea about your point about turning portfolios into OEIC's though...so maybe that's the USP ?

There are plenty of other platforms that target IFA's exclusively aren't there ?

Not, not individual IFAs - Nationals, Networks and DFM providers.

The portfolio to OEIC is one USP, but the level of tech is way in advance of the mainstream platforms and the charges are the most competitive in the market.

I know of one DFM looking to move a £9bn book onto the platform in pretty much one institutional transaction for the increased tech and cost savings.

I digress now. Obviously my original suggestion is not required. I could do a bps model with a cap, but I don't think that would be well received either.

To this extent I'll leave the idea here. What do people want...?

Julian

[RichS]

Faster horses? You tell us. What's the quantum leap going to be? I don't know, but there's enough stir in the financial advisory/fees space for it to be ripe for evolution.

For my money, the first platform to offer honest all-in pricing at a low % based on buy-and-hold long-term no-churn asset/funds (probably passive), will have it made.