Ease of use rather than cost seems to be at the heart of accountants increasingly opting to use investment platforms with respect to self-managed superannuation funds (SMSFs), according to new data released by Investment Trends and OneVue.
The research found that while only 18 per cent of SMSF clients are currently using investment platforms, 59 per cent of the accountants surveyed said they regarded platforms as an appropriate online facility to manage SMSF client portfolios.
Commenting on the result, OneVue head of partner solutions Brett Marsh said the survey found 54 per cent of recent SMSF client investments had been made through an investment platform.
"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," he said.
"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 financial 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 by legacy systems, which can sometimes be very costly to change."
Originally published on SMSF Essentials.
