subscribe to our newsletter
Platforms ‘slow’ to meet SMSF demands

Platforms ‘slow’ to meet SMSF demands

Reporter
12 June 2014

Platform providers have been “painfully” slow in meeting the demands of advisers and the growing SMSF market, according to an MDA provider.

In an article for SMSF Adviser’s sister publication ifa, managedaccounts.com.au business development manager Paul La Macchia said wraps are effectively a managed funds “supermarket”.

“Some [wraps] don’t even allow investors to buy stock using cash from sales until the sale settles, that’s difficult to explain to savvy clients,” he said.

“Wraps also lack the necessary modeling tools and capabilities to enable advisers to trade efficiently on behalf of clients while achieving greater scalability and practice efficiency."

“These are the reasons why many sophisticated clients and SMSFs don’t use traditional platforms,” he added.

Mr Macchia said advisers who deal with SMSFs know their clients want greater control, customisation, transparency and flexibility and want to minimise costs as they approach retirement.

“Platform providers have been painfully slow to meet the demands of advisers and the burgeoning SMSF market, which held over 60 per cent of assets in direct shares and cash as at 31 December 2013,” he said.

“In many ways, traditional platforms make little sense, with alternative options such as managed discretionary accounts providing advisers with a new scalable, efficient and cost effective avenue,” he added.

If you would like to keep up to date with the latest developments in the platform industry, Sterling Publishing, publishers of SMSF Adviser, will be hosting the 14th annual Wraps, Platforms & Masterfunds Conference in the Hunter Valley this September. Click here for more details. 

 

Platforms ‘slow’ to meet SMSF demands
smsfadviser logo
join the discussion

Do you support the government’s proposal to change the annual SMSF audit requirement to three years for members with clean audit history?

SUBSCRIBE TO THE
SMSF ADVISER BULLETIN

Get the latest news and opinions delivered to your inbox each morning

In this month's issue:

  • Time wrap
  • The tech bull run
  • From hobby to passion
  • Golden Years
  • An untimely reminder
  • Why change is so difficult
  • Key Strategies for equalising super