As the RDR deadline creeps ever closer, providers should act fast to put their products on platforms, says leading financial outsourcing company
Financial services outsourcing company OPAL stresses that time is running out for product providers to get on platforms now that the industry has entered the final phase of preparation for the RDR. Platforms are already an attractive option for advisers and investors alike due to their flexibility and pricing transparency. However, demand is set to increase as many consumers look to invest passively in order to keep new service charges lower post-RDR. Outsourcing to a third party will be crucial for providers looking to bring new platform-ready products to market in time for the December 2012 deadline.
Tony Collins, chairman of OPAL, said:
“We are seeing significantly more interest from providers seeking to develop platform-friendly products as the RDR deadline approaches. Many have stood on the sidelines as the new marketplace has been defined and now the onus is heavily on these companies to gain a competitive advantage by delivering these products and getting them on platforms in the limited time we have left before RDR implementation.”
Collins continues:
“Despite the tight timescale, it is possible to develop these new ‘platform products’ and take them to market via straight-through processing but at this late stage, outsourcing this to a third party is the only real practical way to get it done in 3-6 months. Clearly those who move quickly will reap the benefits of having offerings ready to take advantage of the new flow of money that the RDR will create - so it is no surprise to us that this is starting to gain traction.”
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