Platforms go beyond FDS requirements


By Krystine Lumanta

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Despite a mixed response from providers, the majority of platforms feature fee disclosure statement (FDS) functionality and processes to help advisers exceed obligations under the Future of Financial Advice (FOFA) reforms, according to Investment Trends.

FDS administration was highlighted as one of the top FOFA challenges in the “May 2013 Planner Business Model Report”, with 48 per cent of planners raising it as an issue.

According to the “December 2013 Platform Report”, released last month, platforms varied greatly in terms of their FDS readiness.

However, the majority of platforms provided functionality that tracked key dates and services, alerts and FDS generation, it said.

A handful of platforms were still waiting on the reforms for a more concrete footing, while other platforms provided planners with a comma-separated values document that detailed the fees, leaving it to planners to establish their own ways of delivering on their FDS requirements, the report said.

Throughout 2013, platforms focused their developments on addressing advisers’ needs, Investment Trends senior analyst Recep Peker said.

“Common areas development focused on at an industry level include enhancements to usability, adviser support, reporting, direct shares and corporate actions functionality, while building FDS functionality from scratch,” Peker said.

The report found the most feature-rich FDS functionality was delivered by Asgard eWrap, which included bulk FDS generation, followed by Macquarie Wrap and Perpetual Private Wrap in equal second spot.

The report was based on comprehensive face-to-face reviews of 25 leading master trust and wrap platforms, covering 454 key characteristics of each platform and its associated service offering.

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