I recently connected to platform Guru Mark Polson of the langcat, to discuss the latest Langcat’s Platform Pricing Guide, Centralised Investment Propositions and the Pie of Destiny – don’t worry about the latter, it’s to do with who’s getting paid what in the value chain – platforms, advisers, DFMs etc.
If you are yet to get your copy of the lang cat’s Platform Guide, go NOW!
I asked Mark what the Platform Pricing Guide tells us (but more importantly what it doesn’t tell us) about how platform pricing is changing. Are platforms locked in a race to the bottom?
According a recent While Paper by Altus, effective yield on platform AUA has already halved (from 80bps to 40bps) between 2006-2011 and looks set to fall further still as price competition intensifies. How much further will platform pricing fall or it is just about where it needs to be now?
How much of a concerned is profitability and sustainable of platforms, given that many haven’t made profits, yet they are reducing their charges regardless?
What does all these tell us about what advisers should be thinking in their platform due diligence?
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If you have any questions for Mark, just send it to me on Twitter @AbrahamOnMoney