Overview

The Retail Distribution Review (RDR) is having the biggest impact seen in the industry for many years. The new focus on client service and transparency of charges will encourage many to further embrace the opportunities offered by platforms, but the adequate due diligence of platforms is not seen as a straight forward task.

FSA factsheet on fund supermarkets and wraps.

The FSA factsheet recommends that advisers consider nine points about the platforms they intend to recommend:

• The platform provider
• Terms and conditions of using the platform
• Charges – including actual cost, charging structure and transparency of charges
• Range of funds, tax wrappers and other products available
• Range of asset classes
• Functionality (e.g. the ability to switch or re-register)
• Accessibility
• Additional tools (e.g. risk profiling and asset allocation tools)
• Support services (e.g. help facilities and training)

Synaptic Comparator is the only comprehensive tool available to advisers that will allow them to analyse platforms with specific focus on all these aspects.

Synaptic Comparator is a wealth management solution for professionals and the first module in Capita Financial Software’s new online suite of integrated services for advisers. This innovation will revolutionise the way due diligence is carried out for platforms by reducing unproductive time and costs for advisers.

Synaptic Comparator is an online research tool, using the very latest technology. The system is flexible, allowing the comparison of leading platforms on the criteria important to both the client and adviser firm. These could be the features of the platform itself, aspects of the tax wrappers or the availability of underlying funds.

The product enables advisers to save time and effort by being able to conduct regular due diligence of the platform market. It maps the adviser firm's requirements for their client segments; including features, tools, independent service ratings from The Platforum, funds and own charge projections validated by Capita actuaries and the platforms themselves.

• Produce Reduction in Yield (RIY) projections;
• Configure client segment adviser charging profiles;
• Configure ‘special deals’ negotiated with platforms for each firm;
• Record a firm’s assets under administration with each platform to ensure correct tiered charges apply;
• Set up and maintain portfolios aligned with risk profiles;
• Compare multiple platform, wrapper (insured and third party) and fund combinations;
• Set up panel and periodically review them against client segment requirements as charging structures change;
• Conduct individual client assessments, in accordance with the FSA’s DP10/2 requirements;
• Compare open architecture wrappers (e.g. SIPPs across multiple platforms supporting them);
• Produce audit trails for compliance files;
• Produce fact sheets on platforms, wrappers and funds for clients or reference.

Crucially, Synaptic Comparator brings together all of the charges associated with each component, providing a true like-for-like comparison across the market place.

Own charge projections include:

• Platform fees including cash accounts
• Rebalancing fees (including percentage, frequency and trades per switch)
• Insured and third party wrapper fees
• Fund TERs and platform specific rebates
• Adviser charges

The flexibility offered by Synaptic Comparator offers advisers unrivalled functionality. For the first time a single system is available to analyse all aspects of platforms and providers, together with actuarially approved projection tools encompassing all charges.