In the feedback statement to last year’s platform paper, the FSA laid out its plans to probe deeper into advisers’ wrap usage, fearing potential conflicts of interest.

The paper said it would be conducting a series of visits to advisers using platforms after warning it was concerned not only about conflicts of interest but also about rising consumer costs and inappropriate investment advice that might be given.

FSA retail policy and themes lead Rory Percival said they would be scrutinising all platforms – not just those owned by advisers – though he highlighted adviser-owned platforms as a particular threat to the principles of Treating Customers Fairly.

He says: “If you are an intermediary and have shares in the platform provider, there is a potential conflict of interest. If you fail to manage a conflict of interest, you run the risk of not treating customers fairly.”

But Nucleus, part owned by the advisers that use it, says the FSA’s focus on wraps and platforms is inappropriately skewed.

Nucleus Financial Group chief executive David Ferguson says: “The FSA should be concerned about any market activity that puts an IFA’s interests before a client’s but I do not see how it relates to ownership of wrap platforms more than anything else.”

One platform doing rather well at the moment is Transact, or so say the 75 adviser firms recently polled by CWC Research.

Transact was voted top in a survey that judged platforms – also including Standard Life, Cofunds, FundsNetwork and Skandia/Selestia - with marks out of five on their admin capability, functionality, scope, re-registration process, access to staff and satisfaction with charges.

Cofunds came second, ahead of FundsNetwork on securing single-provider deals with major IFAs but FundsNetwork currently has the most users.

Elevate, Axa’s new-to-market platform has now been fully integrated with Intelligent Office, allowing advisers to see a ‘mirror view’ of their Elevate holdings.

Intelliflo, provider of Intelligent Office and Elevate are seeking further integration between the two systems ensuring a totally end-to-end solution that lets users monitor, carry out automatic valuations and receive e-commission statements for reconciliation and reporting.

Elevate is currently being trialled with six consultative advisers, ahead of a full roll out throughout the year.

Back on the subject of TCF, it certainly seems to be at the heart of many a support organisation’s range of wares these days.

Tenet has devised two new offerings for advisers using its services for directly authorised IFAs – IFA Professional. One is a TCF audit, which I’m seeing as a practice run, ensuring the advisers are ready to meet the FSA’s deadlines – the first of which was last week.

Tenet says their audits are based largely on the regulator’s actual assessment procedures, resulting in a full gap analysis and spotting weak areas within the firm, better preparing them for the final deadline of December.

Also added to IFAP’s suite of support services is a compliance training day, which will, among other things, look at the all-important TCF requirements.

And software provider 1st says advisers without proper IT capability will struggle with meeting the FSA’s TCF requirements.

It has launched a new version of its Adviser Office – AO6 - with new features to support IFAs with adhering to the new TCF obligations, including a Scottish Widows update link, Sipp, pension and fee enhancements and estate planning and value-based commission.

The Exchange and 1st propositions and business development director Paul Yates says: “We believe that without the proper use of technology, adviser firms will be unable to report on the FSA requirements on TCF.”

Source: Money Marketing