Platforms spent $130 million on developments in 2011
Platform providers have invested around $130 million on new developments in 2011, with MLC Wrap and Navigator platforms receiving the highest ranking from financial planners.
That is according to the Investment Trends December 2011 Platform Report, which also found the Government's Future of Financial Advice (FOFA) reforms were both a catalyst and a hindrance to innovation.
The new developments mainly focused on improving financial planners' business efficiency, according to Investment Trends principal Mark Johnston.
Johnston said the level of innovation pointed to the competitiveness in the platforms industry.
"In spite of the consolidation witnessed over recent years this remains an intensely competitive industry, with providers continuing to raise the bar," he said.
However, uncertainty over the final details of the legislation might compel some platforms to take a minimalist approach to development and hoard the so-called "development cash".
"Many fear that once the legislation is finalised, they will be forced to develop a lot of functionality over a very short period of time," Johnston added.
MLC Wrap and Navigator continued to rank highest in terms of overall functionality, while FirstWrap, netwealth, Asgard eWrap and Macquarie Wrap made up the top five, as voted by financial planners.
AXA North was the one to increase its score the most over 2011.
The report compared 26 master trust and wrap platforms across more than 455 aspects of their service offerings.
Recommended for you
ASIC has permanently banned a former Perth adviser after he made “materially misleading” statements to induce investors.
The Financial Services and Credit Panel has made a written order to a relevant provider after it gave advice regarding non-concessional contributions.
With wealth management M&A appetite only growing stronger, Business Health has outlined the major considerations for buyers and sellers to prevent unintended misalignment between the parties.
Industry body SIAA has said the falling number of financial advisers in Australia is a key issue impacting the attractiveness and investor participation of both public and private markets.
