As alternatives continue to gain traction, two financial advice platform providers have shared the complexities of hosting alternative assets amid growing adviser demand.
Financial advisers have indicated they are keen to expand their usage of alternatives and private markets products, especially for high-net-worth (HNW) clients, but their lack of daily pricing and illiquidity mean this can be difficult to enact.
Speaking with Money Management, HUB24 and Praemium shared how they have been working to create a smooth process for their adviser users.
Already offering a number of alternative products across its investor-directed portfolio service (IDPS) and Super options, HUB24 said advisers are frequently requesting greater access to alternative assets through the platform.
Similarly, Praemium chief operating officer James Edmonds agreed advisers, particularly those with HNW clients, are calling for “broader access to alternative investments”, signalling a strong adviser demand.
“These include private equity, private credit, infrastructure, venture capital and other assets that support portfolio diversification and differentiated returns. There have also been requests to be able to invest in offshore funds.”
Advisers have also been calling for non-custodial solutions, according to Edmonds, as they look for greater flexibility to include direct investments and private assets in portfolios.
“These are increasingly part of bespoke portfolios tailored to client needs,” he added.
Due to the nature of alternatives, however, Edmonds said that it can be challenging to host some of these assets on the platform, triggering the need for more rigorous protocols to support these products.
“Funds with liquidity constraints require additional operational support, liquidity oversight and, when it’s requested for super, trustee coordination. There can also be additional due diligence required to ensure the investments are suitable. Invariably, these funds are typically only available to sophisticated investors.”
Meanwhile, HUB24 explained that it is able to support varying levels of liquidity through a custody offering on the HUB24 platform, as well as a non-custody solution through its HUB24 Private Invest wholesale client offering.
The Private Invest option was launched in April 2025 as the platform sought to work closely with wholesale and HNW clients to provide easier access to a broader range of wholesale investments and simplify the administration of custody and non-custody assets.
Although non-custody solutions do offer greater flexibility in this regard, Edmonds explained, another factor is that reporting and data aggregation can also be more complex.
Both platforms said they have developed strict criteria and considerations to be met before allowing a product on the platform.
For HUB24, this means that the fund manager of a new product must demonstrate the investor goal being met by the investment, that it can be effectively administered by HUB24 and the platform’s subcustodian, along with addressing concerns that may arise during the assessment process.
Rather than funds being listed at the request of the manager, it is actually driven by adviser demand where they will only be considered if advisers request the fund to meet their clients’ needs and they meet the platform’s assessment criteria.
Looking at Praemium’s approach, Edmonds said fund managers hoping to secure a place on the investment menu are required to meet compliance, liquidity and operational standards or risk being declined.
“Managers must pass our investment governance process, they must meet due diligence and compliance requirements and ongoing liquidity and reporting requirements. Our investment governance team conducts ongoing monitoring of all funds made available. The trustee will impose additional criteria for any funds made available for super.”
Rigorous processes for platforms have become even more crucial following the release of an APRA letter to platform trustees, signalling the urgent need to improve onboarding practices and monitoring. This call to action comes in the wake of information that First Guardian and Shield managed investments schemes were available on some platforms, opening up members to considerable loss.
The prudential regulator called on platform trustees to improve their onboarding, ongoing monitoring, and remedial action and member transfers. Meanwhile, they will now be required to strengthen framework practices, consider possible breaches of the prudential standards, and review and confirm FAR accountabilities.
“APRA will actively and closely monitor steps taken by platform trustees. Where planned enhancements or implementation are assessed inadequate, platform trustees can expect robust regulatory action and the full use of APRA’s regulatory tools.”
