Andy Bell said lack of profitability would be the big theme to play out during 2016 in the platforms sector.

He said: “Too many platforms are chasing the mirage of profitability without adequately managing their cost base. With platforms now accounting for over half of retail sales, I think the commercial models are going to come under greater scrutiny from advisers, the regulator and platform shareholders.

“The FCA clock is ticking for platforms that operate hand-to-mouth and we may even see the amount of regulatory capital required to be held by platforms increase further.

“We have already seen evidence of the patience of deep-pocketed shareholders running thin and I think this is set to continue.”

He said although plenty of platforms are for sale at the moment very few firms appear to have the appetite or ability to buy them. He predicted widespread consolidation for 2016.

He said: “That is not to say we won’t see selective deals where it makes sense but I think these are more likely to be companies buying into the platform market rather than platforms consolidating.

“Vertical integration is a horrible phrase but I think it is a trend we will see more of, with platforms looking to extend the services they offer and fund groups looking to wrestle back distribution, which is where we may see some acquisition activity.”