The five platforms wealth managers should be on

As the number of platforms grows in the new regulatory environment, we identify five that wealth managers should focus their precious resources on cracking

The retail distribution review (RDR) has created an opportunity for wealth managers to offer their discretionary services on platforms, as advisers look to outsource investment management and focus on providing financial advice.

Quilter managing director and former Citywire Wealth Manager cover star Stephen Vakil (pictured) explains the dynamic: ‘A number of IFAs are looking to streamline their investment management offering to their clients and increase their influence over those assets.’

There are several ways in which advisers can outsource investment management, so it is crucial for wealth managers to register on the platform that best fits their needs.

Transact head of marketing Malcolm Murray underlines the options available to them. Although more advisers are now outsourcing the management of their clients’ assets, this can be achieved in different ways, Murray says. ‘Transact is an execution-only wrap service and, as such, exists to carry out the instructions of its adviser users. It has been doing this for more than eight years and during that time it has accommodated varying requests.’

Some wealth managers have launched their services onto platforms recently, with Premier Asset Management and London & Capital joining the likes of Williams de Broë, Cheviot and Vestra on the Ascentric, Transact and Novia platforms. 

Cheviot was one of the first wealth managers to launch its service on platforms and worked on the original paperwork behind the Transact discretionary service.

The pitfalls of a scattergun approach

Cheviot also has its investment management service available to advisers via Ascentric but is reluctant to employ a scattergun approach.

Dan Weston, an investment manager at the firm, says: ‘There are an awful lot of platforms and it’s about ensuring that the service we offer is not diluted by spreading it across 20 platforms.