The tool which is currently licensed to support over 7,000 advisers and para-planners includes data for 21 platform charging structures, thousands of funds and in excess of 300 wrappers.
Ray Chinn, Head of Pensions at LV=, whose Flexible Transitions Account product is included in the comparison service, commented:
“In today’s market, off platform products can offer some clients access to a suitable range of investments without the need to utilise a platform and incur unnecessary additional costs, so it is increasingly important that IFAs look at both on and off platform solutions when assessing which offering best suits their clients’ needs.
"I am delighted that there is now a tool that will allow IFAs to compare both platform and off-platform products quickly and easily.”
The Comparator tool was first launched in July 2010 and was developed alongside platform specialists, The Platforum.
Managing Director of The Platforum, Holly Mackay added:
“Research for our new Adviser Platform Guide revealed a 4.2% decrease in the amount of new business advisers were writing with standalone product providers from Q2 to Q3. Advisers using a single platform used this vehicle for 53.2% of new business, a rise from 51%.
“We’re fans of platforms and the benefits that they bring but we also acknowledge the role that standalone products play for a section of the market – this was highlighted in the latest FSA paper PS11/9.
Not every client will need a platform – and with client suitability the mantra of the FSA, the first question for each adviser firm is not “Which platform should I use?” but “Is this client suited to a platform?””
In addition to a number of functionality enhancements, the new version of Synaptic Comparator enables users to include AKG platform financial strength ratings to evidence that capital adequacy has been taken into consideration during the research process.
Product Director at Capita Financial Software, William Watling, said:
“The changes we have made to Comparator are a direct response to PS11/9 and will help to reduce the compliance and due diligence headaches for advisers surrounding platforms.
“The feedback we have had from our IFA and platform focus group has been overwhelmingly positive and we’re delighted that the enhancements are now widely available to all advisers.”
