Swirls of movement continue on the D2C supply side. Pension assets are going direct through SIPPs. Stockbrokers continue their march into funds. The life companies and platforms are facilitating execution-only for adviser firms. And as for fund managers, the growing masses of self-directed clients will need solutions not single strategy building blocks.
We sense that we might be seeing the beginning of a migration away from advice and a massive 86% of today’s UK investors will either fully self-serve or dip in and out of advice. Many are looking for guidance and validation and Simplified Advice is thin on the ground. Content is becoming the new battle ground for customer acquistion.
This report looks at the UK D2C market size, who the major players are and the economics of direct platform businesses. The 'consumer' part uses research from Ipsos MORI, Consensus Research and readers of The Telegraph to build up a picture of the number of private investors and their preferences. Our Road Testing chapter compares the top D2C propositions from the user perspective.
It is for those with or developing D2C proposition or for fund managers and others interested in the rapidly evolving D2C distribution channel.
The Direct Platform Guide is available to purchase at £7,200 +VAT ($11,400, €8,450)*. For further information please email Jeremy Fawcett.
Holly Mackay talks about the rapidly evolving direct platform market
- The direct platfrom market was £94.3bn as at September 2012
- The biggest providers are Hargreaves Lansdown, Barclays Stockbrokers, Fidelity, TD Direct Investing, Selftrade and Alliance Trust Savings
- The three key drivers of change are regulation, auto-enrolement and technology
- 100% of investors say a well-known and trusted company name is important; only 25% say price
- 26% of investors have used a platform and 28% plan to by their next collective from a platform
- Hargreaves Lansdown receive our Direct Platform Best User Experience rating followed by Interactive Investor and Alliance Trust Savings
'Direct Platform Guide – Issue 3' in the News
Charles Stanley slams Newton for D2C clean share refusal
Ben Yearsley: Newton should be ambivalent. Charles Stanley Direct has hit out at Newton Investment Management for not making its clean share classes available to direct to consumer platforms.
Fundweb, 4th April 2013
Beware costly exit fees at fund supermarkets
Investors who use a fund supermarket and take no financial advice could be trapped by huge exit fees if they want to switch to another platform.
The Sunday Times, 10th February 2013
Clean share classes: What the execution-only platforms are offering
Many execution-only platforms are holding off adding clean share classes ahead of final rules from the FSA which will confirm whether they are able to retain fund manager rebates.
Money Marketing, 8th February 2013
The Platforum tips life companies for D2C platform move
Life Companies are in a prime position to offer direct-to-consumer platforms to clients who are unable to afford advice as a result of the RDR, according to The Platforum.
Money Marketing, 1st February 2013
Holly Mackay: Doing the D2C hokey-cokey
As we launch our third D2C platform report, there is more of a buzz in the air about this than before. D2C has become trendy, a buzzword.
Money Marketing, 25th January 2013
D2C platform assets rise 29% to £94.3bn
Assets under administration on execution-only platforms increased 29 per cent from £73.2bn to £94.3bn in the 12 months to 31 September.
Money Marketing, 24th January 2013
Fund supermarket comparison site launches
Investors can now use a comparison website to find the cheapest online fund supermarket for their Isas and personal pensions.
Money Observer, 23rd January 2013
Previous Direct Platform Guides
On the surface there's not much movement in the direct-to-consumer (D2C) sea but beneath the waves there are exciting changes. A market of 6.5 million active private investors in the UK are not unnoticed by providers. The RDR, changing consumer behaviour and the march of digital technology continue to disrupt this market. What are the opportunities and who is taking the initiative?