Kevin Russell, Proposition Director at SEI Wealth Platform, reacts to the recent platform study from the FCA:

“This provisional paper emphasises just how crucial technology is to the success of platforms going forward in delivering good customer outcomes. A key takeaway within that is the regulator’s views on how the industry needs to tackle challenges around disclosure and transparency. Going forward, whatever the regulator can do to facilitate an environment where innovation is encouraged to tackle recognised issues should be welcomed and encouraged.

“In terms of the model used to power platforms, it has long been clear that outsourcing technology is already the most popular choice when it comes to the UK platform market, with almost three quarters opting for that over proprietary technology. We don’t see this changing, and indeed new entrants to the market continue to offer an ongoing opportunity for those of us already in the market to enhance solutions for advisers and clients through partnerships and integration to deliver new and innovative solutions.”

“Nonetheless, solutions need to deliver positive outcomes for consumers and advisers, and the report also makes it clear that those businesses which do not take technology seriously by making the necessary ongoing investments risk causing customers detriment, for example by causing delays when it comes to trading portfolios. Therefore, selecting partners with the capacity to deliver ongoing investment in platform service through technology continues to be vital.”