Consolidation

Client Asset Consolidation and Platforms

I have been working in the paraplanning profession for 15 years now. For a large part of this time, I have helped advisers with the efficient transition and consolidation of their clients’ assets on to platforms.

I was recently able to attend the excellent Money Marketing Interactive event. One of the day’s talks came from a leading platform provider and focused on the consolidation of client assets. As head of paraplanning at b-compliant Ltd, this was of great interest.

During the presentation, I was interested to hear that there is an estimated £517 billion of assets held on advised and direct platforms in the UK (Platforum, March 2018).

This got me thinking about how many assets I had worked on over the years and helped advisers transition on to platforms.

The Benefits of Client Asset Consolidation

For some time now, we have been aware of the potential benefits platforms provide in terms of meeting client expectations, delivering efficiencies and increasing revenue opportunities for advisory firms.

Surprisingly, however, I learnt at the presentation that there are still an estimated £2.4 trillion of legacy assets held off-platform (Citywire Money, August 2017).

This comes at a time when clients are demanding greater simplification of their assets.

In fact, 83% of clients surveyed in the November 2016 Flex MR consolidation research expressed “an interest” in consolidation.

MiFID 2 and Client Asset Consolidation

Platforms can provide efficiencies for adviser firms in many ways.

One example, which has become more important recently, follows the introduction of MiFID 2 and the “ex-post” disclosure of costs and charges.

To recap, this part of MiFID 2 means advisers need to disclose the actual costs and charges applicable to their retail recommendations at least annually.

Importantly, advisers need to aggregate the costs and express them both as a cash amount and as a percentage.

Platform Reporting and Adviser Challenges

Many leading platforms have already explained how they will help advisers with this MiFID 2 requirement.

This is great for adviser firms where client assets are held on one platform.

However, some clients hold assets across several investment companies or providers.

How will advisers efficiently and accurately collate this information for their clients?

Furthermore, how will advisers present this information to clients in a meaningful format which meets MiFID 2 requirements?

Support With Client Asset Consolidation

In conclusion, if you are an adviser who understands the benefits of the consolidation of client assets, but just are not sure where to start, or if you are eager to consolidate client assets to a platform but do not have the paraplanning resource required for the task, give me a call for a chat about how b-compliant can help to move your business forward.

For more information, get in touch with our team today on 0161 521 8641 or visit b-compliant contact page.