Hackles rising over Investment Trends report

investment-trends/advisers/bt-financial-group/research-and-ratings/platforms/macquarie-adviser-services/morningstar/

12 August 2011
| By Benjamin Levy |
image
image
expand image

Industry platform providers have come out swinging against a recent Investment Trends report suggesting they are not delivering on their direct share platform offerings.

Investment Trends' recent Planner Direct Equities report found that while 61 per cent of advisers used platforms for their direct share exposure, only 16 per cent of users found the offering to be "very good".

New gaps in the platform offerings are emerging in share research, timelines of data and pricing, according to the report.

But platform providers such as BT Financial Group bristled at the suggestion, saying they had spent a vast amount of money over the past three years improving the trading ability of their direct share offering.

BT Wrap users have access to bulk trading capabilities and same day trading abilities, lowering costs and saving time for advisers, said head of BT Wrap Chris Freeman.

Freeman also rejected suggestions they didn't have enough research available for advisers.

Tailor-made watch-lists of certain stocks can be made for advisers, as well as email alerts on ASX related news, he said.

"We've got better market and company information," he said.

Share research was widely available for advisers from other areas as well, Freeman said.

"Research is like a commodity, you can get that anywhere," he said.

Online broking companies such as Bell Direct offer research and trading abilities for just $15, while Westpac Broking and Commonwealth Online Securities also offer research at a low cost.

Many dealer groups also provide their own research in partnership with different brokers.

Macquarie Adviser Services' head of insurance and platforms Justin Delaney insisted that interest in direct shares was growing thanks to the rich capability they provide.

"The role of the platform has been pure administration, providing custodial services, reporting and access to trading. I think the level of functionality provided by our platform is very comprehensive," Delaney said.

However, Delaney admitted they could do more in terms of evolving research and trading services for advisers using the platform.

Investment Trends senior analyst Recep Peker suggested that the number of planners using platforms for direct shares has plateaued. "The number of advisers using platforms is unchanged from last year," he said.

Morningstar co-head of fund research Tim Murphy said advisers tended to complain about direct shares on platforms because platforms were originally designed for managed funds, which have a different structure.

They weren't really designed for trading securities on live exchanges. Some platforms have addressed that situation better than others, but it varies, Murphy said.

Platforms had been ploughing money into their structures and were at different stages of success, he added.

Homepage

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

So we are now underwriting criminal scams?...

2 months 3 weeks ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

2 months 3 weeks ago

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

4 months 4 weeks ago

ASIC has suspended the Australian Financial Services Licence of a Melbourne-based financial advice firm....

1 week 4 days ago

The corporate regulator has issued infringement notices to three AFSLs whose financial advisers provided personal advice to a retail client while unregistered....

2 weeks 2 days ago

ASIC has released the results of its first adviser exam to be held in 2025, with 241 candidates attempting the test....

3 weeks ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND