AJ Bell has unveiled its Due Diligence Hub: an online service targeted towards helping advisers with the investment platform selection process.
Launched with the intention of fostering increased levels of due diligence among advisers following the FCA’s TR16/1 thematic review of the subject, AJ Bell said advisers should tighten their processes given a number of platforms are implementing technology updates. The FCA’s 2016 review found that some adviser firms do not attempt to understand or challenge their own preference for products or services, leaving them biased towards existing offerings.
Featuring commentary and content from the likes of the lang cat, Defaqto and Platforum, the latter offering guidance on the top six factors to consider when it comes to platform due diligence, the hub also features FinalytiQ’s advised platform report, which details data and analysis on the performances of the industry’s 26 advised platforms.
Alongside AJ Bell’s own due diligence factsheet, which includes information on a company’s strength, service, functionality, investment choice and pricing, the hub also contains information based on frequently asked questions from advisers.
The hub’s services are available to advisers registered on AJ Bell’s InvestCentre site.
www.investcentre.co.uk/duediligence-hub
Comment:
AJ Bell’s Due Diligence Hub may well offer useful advice and expert views on the process and importance of due diligence when it comes to platform selection. However, launches of this nature – from providers with their own platforms to promote – require some caution.
That said, the hub’s main features, such as industry commentary and content that includes a report from research firm FinalytiQ, should help encourage greater introspection among advisers who may have fallen into bad habits when it comes to platform selection.
The range of material includes offerings from the most credible platform-related consultancy businesses. The lang cat’s article, for example, outlines information from the FCA’s relatively lengthy Conduct of Business Sourcebook (COBS), the details of which advisers may wish to brush up on.
AJ Bell says parts of its hub take a “slightly tongue-in-cheek” approach, but intermediaries should ensure they are alive to the risk of product bias.
The firm’s due diligence factsheet does provide a simple checklist for advisers, outlining the most relevant information about its platform, but users may feel it most appropriate to use the hub in conjunction with other research sources.
