Hangout With David Ferguson: FCA Platform Paper, Legacy Asset and Implications for Advisers


I recently connected with Nucleus CEO, David Ferguson for the AdviserHangout to talk about FCA Platform Paper, legacy asset and implication for advisers and platforms.  David talked about what the paper means for  platform business models and profitability going forward. He also pointed out that advisers need to look beyond cost and functionality when doing a platform due diligence.


Lots of very interesting stuff in this, so enjoy!


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This is the show announcement posted earlier.

Set your reminders for 2:00pm on Wednesday, 8th of May for our next AdviserHangout session. (Unlike previous session, please note this session is taking place over Skype rather than G+, and you can listen in or watch by connecting to my Skype ID: Abrahamokus)

David FergusonMy guest this time is the CEO of Nucleus, David Ferguson and we are going to be talking about the FCA latest platform paper, legacy asset and implications for advisers and platforms. Who are the winners and losers?

Starting from 2016, rebates from fund managers to pay platforms and adviser trail income on pre-RDR legacy book will dry up, completely! What does this mean for advisers ( and platforms)  sitting on a substantial legacy asset? And remember the April 2016 is the deadline, not the target date. Can we expect that some platforms will start to implement this sooner rather than later? How should advisers respond to this?

What does this mean for platform business models and profitability going forward? Can we expect that this will impair on some platforms ability to develop their propositions and support advisers as they should? What key questions should advisers be asking time platforms as part of their due diligence process?

Many ‘clients’ in legacy asset are dormant, what support can advisers expect from platforms in contacting these ‘clients’ and moving them into an unbundled proposition?. What if the clients don’t respond? Can platforms continue to charge them? What does mean for the advisers’ income?

I’m also keen ask David how advisers can meet the new responsibilities to satisfy themselves that platforms are following the rules, specifically relating to section  6.1E.9 Using a platform service when advising 

 A firm must not use a platform service as part of a personal recommendation to a retail client in relation to a retail investment product unless it has satisfied itself that the platform service provider, and its associates, only receive  remuneration for business carried on in the UK which is permitted by the rules in this section.

So join me and David Ferguson as we slice and dice this very important subject. If you have any questions, just tweet me or drop them in the comment box below.




How To Join The Hangout

This session is taking place over Skype, and you can listen in or watch by connecting to my Skype ID: Abrahamokus

Please follow me on Twitter @AbrahamOnMoney for the link to watch the join in.




AdviserHangout is a live session on G+Hangout where I talk to thought leaders in the industry on a range of  hot topics and issues that are relevant to advisers.  You can  see videos of previous sessions here







Abraham Okusanya
Abraham is the founder of FinalytiQ, a research consultancy for platforms, asset managers, and advisory firms. Recognised as one of the country’s leading experts in retirement income, platforms and investment propositions, Abraham has authored several papers on these subjects and delivered talks to the Personal Finance Society, The FCA and several conferences across the country.

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