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.
SUBSCRIBE TO THE SMSF ADVISER BULLETIN
23 Jun 2016Trustees reminded of ‘positive’ CGT news as EOFY loomsBy Katarina Taurian
22 Jun 2017Westpac veteran and SMSF exec set to departBy Staff Reporter
22 Jun 2017ATO sets compliance targets for auditors in 2017-18By Miranda Brownlee
22 Jun 2017CGT relief still plaguing trustees, says former ATO execBy Miranda Brownlee
22 Jun 2017Consultancy firm predicts low take-up of SMSF robo-adviceBy Miranda Brownlee
21 Jun 2017SMSFs warned on timing traps with unit trust transfersBy Miranda Brownlee
- view all
Trustees reminded of ‘positive’ CGT news as EOFY looms
A capital gains tax (CGT) issue that was causing confusion in the industry has been cleared up by the ATO, and professionals are being remin...read more
ATO sets compliance targets for auditors in 2017-18
The ATO will extend its focus on auditor independence in the next financial year, examining the referral sources of audits, and will also sc...read more
CGT relief still plaguing trustees, says former ATO exec
SMSF trustees continue to be under a number of misconceptions in relation to CGT relief in terms of what assets are eligible for the relief ...read more
- view all