IFAs and their clients will be the ones ‘who pay’ for replatforming projects which have cost £1.5 billion, according to Nucleus chief executive David Ferguson.
In the second instalment of our platform CEO roundtable, we discussed what 2018’s replatforming woes showed about platform technology.
Ferguson said these replatforming projects, which he estimates will cost £1.5 billion, will ultimately be paid for by advisers and their clients through increased fees, poor service and a lack of innovation.
He, along with Novia chief executive Bill Vasilieff, also said the replatforming issues we have seen were not caused by faults in the underlying platform tech software, but were due to the management of migrations by the platforms themselves.
In the Financial Conduct Authority’s (FCA) platform market study last year, replatforming and platform technology did not feature.
James Hay chief executive Alastair Conway said the FCA has been ‘absent in the thought’ with regards to underlying platform technology providers, and the regulator should have looked at platform tech in the study.
‘They [platform technology providers] seem to be in a ghost world that they don’t seem to be able to get at,’ he said.
Watch the video in full above. You can watch the first part here.