Platform development delayed by reform
Platform providers are holding back on new developments until the details of upcoming reforms are finalised, according to research from Investment Trends.
The wealth researcher’s latest Platform Report found that spending on new development fell in 2012, shrinking to just $100 million from $130 million in 2011.
“Legislative uncertainties and burdens have caused platform functionality at an industry level to grow at its slowest rate for the past five years,” Investment Trends senior analyst Recep Peker said.
“However, even during this challenging environment Australian master trust and wrap platforms continue to evolve through in offering the right products and solutions to financial planners.”
Investment Trends found that financial planners listed improved reporting as one of their most sought-after enhancements from their most-used platform as a way to increase their value proposition.
The Platform Report said numerous platform representatives had focused their 2012 developments on this client demand.
“With the Future of Financial Advice reforms requirements becoming clearer, platforms’ focus is turning to improving planners’ business efficiency and helping them add demonstrable value to their clients,” Mr Peker said.
“Platforms are well positioned for a busy 2013, with many reporting significant development schedules for the year ahead.”
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