Attempts to bring order to chaos are seldom easy and frequently resented.
The Financial Conduct Authority, for example, has often been criticised for not doing enough to protect consumers from poor-quality financial advice, nor ensuring that advisers have the necessary expertise.
However, since the Consumer Duty came in, an equal number of critics have accused the FCA of drowning advisers in regulation, driving them out of the industry and thus increasing the adviser gap.
With this in mind, the launch of the Platforms Association is an interesting development.
The desire for unity is strong. It will be fascinating to see if that is enough to overcome the obstacles
It would be wrong to describe the world of platforms as chaotic but attempts to unify it under a single group have struggled. While it is represented by the UK Platform Group (UKPG), the Association of British Insurers and The Investing and Saving Alliance, these organisations lack a sole focus on platforms.
This is the gap that the Platforms Association hopes to fill.
Launched in September, it aims to be the voice for the sector, engaging with regulators and policymakers, and promoting the industry’s interests. Membership includes UK- and Europe-regulated platforms, sub-custodian firms, white-label technology providers and affiliates such as legal firms and software providers.
Meanwhile, the leadership council — including chair David Moffat and CEO Keith Phillips — will prioritise key industry issues.
The new association could face difficulties in achieving consensus due to competing business models
Summarising the body’s mission, Moffat said, “The Platforms Association will look to co-ordinate collective action and agree best practice to the benefit of platform operators, financial advisers and underlying investors.”
A positive development, you would hope. And, in the opinion of many, long overdue. But, as Momodou Musa Touray points out in our cover feature, the Platforms Association faces both challenges and scepticism.
The sector is already under increased scrutiny through the Consumer Duty, especially over transparency of fees and consumer protection. There are also issues around operational efficiencies and technology integration.
While the new association aims to address these, it could face difficulties in achieving consensus due to competing business models.
On top of this, worries about fragmentation haven’t gone away. Interviewed for our feature, Martin Jennings of Parmenion expresses concern about the split of representation between the Platforms Association and the UKPG, in particular.
It would be wrong to describe the world of platforms as chaotic but attempts to unify it under a single group have struggled
However, Jennings admits that his firm could join the new organisation “if its voice becomes much stronger than the UKPG”, while the UKPG itself has dismissed any suggestion of rivalry.
Indeed, the overall desire for unity is strong. It will be fascinating to see if that desire is enough to overcome the obstacles.
Tom Browne is editor of MM
This article featured in the November 2024 edition of Money Marketing.
If you would like to subscribe to the monthly magazine, please click here.
Comments