Financial strength 'key' when selecting platform

Platforms should spend less time launching financial planning tools and "step up" their efforts in the areas of financial strength, technology and service support, according to Rayner Spencer Mills.

The financial consultancy has launched its updated platform guide which now includes financial strength ratings from AKG - something AKG says should be a key consideration for advisers conducting platform due diligence.

"The development of financial strength ratings for this sector has resulted from fund research and requests indicating strong intermediary demand," said AKG managing director Guy Vanner.

"This is understandable given the importance of intermediaries rightly place on the robustness required in selecting platform providers as a partner to their developing business."

Rayner Spencer Mills director Geoff Mills said advisers need to consider many factors when undertaking platform due diligence, but pinpointed the key areas as financial strength, long-term commitment, technology and service support.

"Platform operators need to step up their work in these areas and spend less time on introducing financial planning tools which firms have already adopted and built into their existing advice processes," he said.

The Rayner Spencer Mills platform guide allows advisers to review the top 13 platforms in the market. It also includes an overview of current regulatory issues together with detailed factsheets allowing advisers to compare each platform against each other.

Mills added the platform selection process should be driven by the unique needs of each IFA firm.

"It is not about who rates or reviews which one more than the other, it is about individual firms agreeing their business needs in line with their client service proposition," he said.