Nicola Brittain investigates the impact of the industry's race to the bottom on advisers' platform strategies
Some people describe the current downward pressure on price in the platform market as a 'race to the bottom' and the resulting disruption is beginning to be felt by advisers. This pressure is the result of the proliferation of clean share classes, following the release of platform paper PS13/1, released in April 2013. The paper banned commission on new business and was enforced just three months ago, on 6 April 2014. Clean share classes, with no attached commission, are more transparent than previous bundled share classes and it is this transparency that has resulted in reduced prices...
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