It seems unlikely that advisers are persuaded to choose one provider over another by white labelling or tools that are widely available on platforms.
Banning providers from offering such tools to advisers could be detrimental. In particular, when it comes to model portfolios, tools help advisers safely deliver quick and efficient electronic trading for their customers. Calculations can be complex and, without technology, time-consuming, and more prone to error.
Labelling this type of functionality as an inducement would cause significant disruption and costs for advisers, and may result in portfolio drift and consequently poorer outcomes for consumers.
Regardless of the remedies the FCA decides to take forward, this is an opportunity for platforms to further improve outcomes for consumers and advisers – especially over pricing.
Alistair Wilson is head of retail platform strategy at Zurich UK
