High costs remain the major perceived barrier to self-managed superannuation funds (SMSFs) using platforms, according to new research undertaken by Investment Trends for OneVue.
The research, released this week, reveals that while an increasing number of accountants approve of the use of platforms as appropriate transaction, administration and reporting tools for their SMSF clients, cost remains a barrier.
According to the research, 54 per cent of recent SMSF client investments had been made through an investment platform, but this did not diminish the fact that only one in five clients were currently using a platform.
OneVue head of partner solutions Brett Marsh said the most common reasons accountants said platforms were appropriate for SMSFs were consolidated reporting, access to wholesale funds and wholesale rates, as well as easier administration and tracking of investments.
"Meanwhile, the common drivers for nominating a platform as the most suitable facility for SMSF clients were good reporting, good administration, easy to mange, familiarity with the platform they use and a comprehensive investment menu," Marsh said.
However he noted that high costs were universally seen as the major barrier for SMSFs using investment platforms.
"A number of platforms have been cutting fees in recent times and more are placing greater attention on offering new efficiencies for those advisers and accountants who work alongside each other in catering to the SMSF sector," Marsh said. "I think the new platform entrants are really paving the way for further innovation to support accountant and adviser partnerships, particularly as they are not hamstrung legacy systems which can sometimes be very costly to change."
