Gemma Davies CFPTM Chartered MCSI, Financial Planning Director at Uniq Family Wealth in Cardiff, Wales, said she subscribed to the theory that ‘platforms are dead’ as the Lang Cat’s advised platforms guide reported last year.
She sees the Sunset Clause as a particular hurdle, with added pressure to improve transparency.
She said: “If we believe recent reports from platform analysts and consultants, the platform industry in its current format with some 30 players is dead.
“I believe this is true and the platform industry is probably one of the only good examples of a competitive market where consumer demand and supply will prevail and it will be a case of survival of the fittest (and largely cheapest).
“The growing cost consciousness of advisers and consumers is continually having an impact on already reduced profit margins and this may leave the weakest of the platform market struggling to survive unless they move with the times but this requires significant investment.
“I’m not sure how much patience and appetite investors have for this, as we have seen from recent news, when there are already key players providing a market-leading service. There are some, such as Standard Life who has committed to spending significant sums in 2016 towards its technology, can others follow suit?”
She added: “It will also be interesting to see the effect of the Sunset Clause on platforms once that arrives in April. Platforms had a hand in revolutionising the way Financial Planners and advisers give advice and they still have an important part to play in the delivery of our advice.”