Advisers are calling for greater transparency in the way other platforms report their assets under administration figures after Skandia decided to overhaul its platform reporting.
Skandia announced last week that it has stripped out legacy business from its AUA figures and will only report new business figures on its retail, advised assets, prompting its reported AUA to drop from over £44bn in Q1 to £26.36bn in Q2.
Skandia’s decision has prompted calls for rival platforms to follow suit and create a common standard of reporting AUA.
Some platforms include other assets within their AUA figures, such as institutional business, direct to consumer assets, pension books, or internal transfers of assets from the wider group to the platform.
Cofunds, which includes institutional and D2C business as part of its AUA, says it has no plans to change the way it reports. FundsNetwork, which includes D2C business and its pension book, was unavailable for comment.
Pilot Financial Planning director Ian Thomas says it would be useful to have a breakdown of platform AUA based on whether the business is institutional, direct or advised, and how much of the assets relate to new business or internal transfers.
He says: “People are basing their due diligence on the success of asset growth and the future viability of platforms, and it is very difficult to get a clear picture to make that judgement if platforms are being as opaque as they are about their data.”
The Platforum managing director Holly Mackay says: “I have no issue with reporting a larger AUA across lots of channels – but why hide the breakdown? Similarly, a very disappointing few are prepared to report net sales.
”If your business model is based around championing improved customer and adviser outcomes offered by non-legacy, modern businesses then practice what you preach.”