The abolition of rebates and pressure on margins could double the break-even point for platforms from £20bn assets under administration to £40bn resulting in major market consolidation, according to Deloitte.
A paper from the firm said while assets under administration on intermediary platforms are estimated to grow significantly - from about £200bn to £600bn in 2018 - the number of operators would shrink due to pressure on fees. The paper said: "Assuming similar levels of industry concentration, less than ten platforms are likely to be profitable in 2018, indicating a major consolidation wave."At present the market is dominated by a handful of players. Deloitte said Cofunds, Skandia and FundsNetwork dominate, while vertically integrated providers such as Standard Life and Axa are continui...
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