There are several investment management platforms in Australia. Before you sign up with one, be sure to look at its financial requirements. The FSA suggests that firms segment their client base to find platforms that best suit the needs of different client types. In addition, they should make sure that the platform operator allows your assets to be transferred and re-registered without incurring additional fees. Finally, they should disclose any fees they impose on asset transfers.
Some platforms charge a fixed administration fee per year, which may suit large investors but not smaller investors. Others offer full portfolio management platforms that can be expensive, with ongoing adviser charges. The FSA has also found a lack of transparency in charges and remuneration. Some platforms fail to disclose fees and charges, and many of them do not provide detailed information about the costs associated with their service. Ultimately, you should consider the platform’s fees and charges before signing up.
FCX Australia offering a more complete solution. While these platforms might not offer great financial asset management, they are unlikely to out-Vanguard. With $15 billion under management, Vanguard is a well-capitalised company with overseas partner companies and parent companies. Compared to the $15 billion FCX has, this is still a tiny fraction of its assets. It is possible that a new competitor will come along and disrupt the industry – but it’s unlikely to compete with Vanguard’s scale or longevity.
The FSA allows platforms to charge a reasonable fee to re-register their advisers. The FSA plans to make this compulsory by the end of 2012, but until then, firms are responsible for the advice they give their clients. Whether or not they use platform tools will depend on the firm’s financial situation and their client needs. Ultimately, your goals will determine whether or not a platform is right for you. So, make sure you check out investment management platforms in Australia.
Millennials are the primary demographic that these new investment management platforms will target. This demographic group is expected to make up the largest share of the workforce, earning higher amounts of money. As a result, these new investors are looking for a platform that can help them manage their own assets and invest it themselves. In addition to the technology, millennials want to take full ownership of their assets. If they can do this, they will be able to use the latest investments in their portfolio.
Currently, most FUA on platforms is in superannuation products, with approximately 48 per cent of assets in the accumulation phase and 32 per cent in the retirement phase. The major banks have dominated the platform market for years and still control the majority of the FUA. But as the wealth industry continues to change, new players have emerged. While the large banks remain the dominant players, a new breed of platform providers has shown impressive capabilities in recent years.