David Tiller, Head of Adviser and Wealth Manager Propositions at Standard Life, discusses the ways in which platform providers can help advice businesses respond to regulation change.
When you read headlines about MIFID II, is your first response anxiety about compliance with a fast approaching deadline, or excitement, as you plan how to use it as a springboard to move your business forward?
Major regulation has a habit of reshaping markets; we may understand that we should view it as a strategic opportunity, but daily business pressures may mean we feel we don’t have that luxury.
An influencing factor in how advice businesses respond to regulation like MIFID II is how well their business is supported by their platform provider.
Why platforms must step up and support the MiFID change
As custodian of your client’s assets, a platform is core to your business. It should help you deliver your client proposition and run an efficient, well controlled business. However, platform providers are not always compelled to go above and beyond the minimum requirements. Focusing solely on minimum compliance standards can fail to address underlying client needs, which in turn increases the risk that regulators will demand further change in the future.
Advisers should hold their platforms accountable during times of regulatory challenge and expect full support to meet compliance and client needs.
What next?
Since MiFID II comes into effect on 3 January 2018, the first task is to determine the immediate impact it will have on your business. The best platforms will be able to describe how they can support you with any changes to your current processes.
However, beyond the immediate regulatory requirements, you should consider how you can improve your business and value proposition going forward. This may mean simplifying your business model to avoid the complexity of dealing with multiple investment and platform providers at once; or it may create an opportunity to differentiate your CIP. For example, in a robo-enabled future, giving advised clients access to increased investment sophistication can demonstrate added-value that can’t be accessed without you.
By keeping a collective focus on improvements for the long term, we’ll help protect clients, create greater confidence in advice and build sustainable businesses that are in it for the long haul.
This information is based on our implementation plans as at today’s date (18 October 2017) and is subject to change. Standard Life accepts no responsibility for advice that may be formulated on the basis of this information.
Standard Life Assurance Limited is registered in Scotland (SC286833) is registered in Scotland at Standard Life House, 30 Lothian Road, Edinburgh EH1 2DH. Standard Life Assurance Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.
www.standardlife.co.uk © 2017 Standard Life Aberdeen
Established in Edinburgh in 1825, the Standard Life group is a financial services group whose principal activities consist of the provision of life assurance and pensions, investment management, banking and healthcare insurance products with approximately 10,000 employees spread across the UK, Canada, Ireland, Germany, Austria, India, Hong Kong and mainland China
Standard Life Assurance Limited is registered in Scotland (SC286833) at Standard Life House, 30 Lothian Road, Edinburgh EH1 2DH. Standard Life Assurance Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. www.standardlife.co.uk
© [2017] Standard Life, images reproduced under licence.