Platforms reduce spending by $30 million
Lingering legislative uncertainty around the Future of Financial Advice (FOFA) reforms has led investment platforms to reduce spending by $30 million in 2012, according to a new Investment Trends report.
The Investment Trends December 2012 Platform Report found spending on new development shrunk to $100 million last year, highlighting the slowest functionality growth rate in the last five years.
"However, even during this challenging environment, Australian master trust and wrap platforms continue to evolve through offering the right products and solutions to financial planners," said Investment Trends senior analyst Recep Peker.
"With the FOFA requirements becoming clearer, platforms' focus is turning to improving planners' business efficiency and helping them add demonstrable value to their clients."
Many platform providers have flagged busy development schedules for the year ahead, so spending might burst again soon, Peker added.
Colonial First State's FirstWrap platform has overtaken MLC Wrap as the leader among platforms in terms of overall functionality, the report found.
It jumped to the lead in 2012 and regained the crown for first place, also ranking first for product offering, transaction capabilities and accessibility.
Another interesting trend seems to be the embrace of new mediums, with many platforms creating their online presence to educate and train advisers.
There is a proliferation of educational webinars, videos, YouTube channels, as well as smartphone and tablet apps delivering technical information to planners.
There are new intuitive and engaging simulation tools available to both planners and their clients, the report noted.
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