Accountants and their SMSF clients are leaning towards platform use, as fees come down and offerings increase.
While the consolidated reporting and access to wholesale funds and rates are attractive reasons to use platforms, SMSFs are usually put off by the high costs.
However, the OneVue / Investment Trends 2013 SMSF Accountant Report shows that recently more than half of accountants think platforms are appropriate for managing SMSF client portfolios.
“Accountants told us that 54% of recent SMSF client investments were made through an investment platform despite that only one in five clients are using an investment platform currently,” said OneVue head of partner solutions Brett Marsh.
“A number of platforms have been cutting fees in recent times and more are placing greater attention on offering new efficiencies for those advisers and accountants who work alongside each other in catering to the SMSF sector,” he said.
Marsh says that smaller independents are boosting competition and helping modernise the industry through things like more extensive investment menus.
“I think the newer platform entrants are really paving the way for further innovation to support accountant and adviser partnerships, particularly as they are not hamstrung by legacy systems which can sometimes be very costly to change.”