Deloitte: Investment platform market to consolidate as fees start to fall

01 July 2013

According to Deloitte, increased competition and reduced margins will force investment platforms to consolidate.

Andrew Power, lead Retail Distribution Review partner at Deloitte, said: “The value of assets held on platforms is estimated to grow from about £200 billion today to £600 billion by 2018. This growth will be driven by continued demand from advisers who see platforms as an essential part of their RDR-compliant, fee-based business models. However, one consequence of the RDR is that margins will be squeezed with revenues for platforms likely to fall from about 30bps to 20bps. For a platform provider, this could increase the breakeven point from around £20 billion of assets to about £40 billion. The result will be that the intermediary platform market will consolidate to fewer than 10 large providers and a few specialists compared to about 30 platforms today.”

Press release

© Deloitte LLP