Managed Accounts chief executive David Heather has responded to suggestions by Netwealth executive director Matt Heine that a “turf war” is underway for managed account services.
Mr Heine said smaller players, such as Managed Accounts, has been able to grab “a bit of market share” by offering products that haven’t been available in the market, specifically managed accounts.
“Moving forward, do they actually have a place once the mainstream platforms all have their equivalent?” asked Mr Heine.
But according to Mr Heather, there is no ‘war’ between incumbent platform providers and niche providers.
“There are numerous options available to advisory firms to deliver administration solutions to their clients; indeed, many boutique advisory firms who have elected to undertake administration in-house,” he said.
“This has come about because incumbent platform providers have either failed, or been too slow, to properly deliver the functionality required by SMSFs, high-net-wealth clients and the advisory firms who service these segments.
“On top of that, wrap platforms are considered expensive by many advisers given the functionality they offer. Some advisers have formed the view that the total cost of a wrap platform across a client base can be replaced through internal resources and some technology spend,” he said.
There will always be room for both small and large players in the managed accounts space, Mr Heather added.
“It’s a positive development that managed accounts are now being accepted as mainstream,” he said.
“The advisory firms who have recently launched an [managed discretionary account] solution using the technology and service of a niche player would tend to agree.”
