Cofunds says it expects to reach £100bn worth of assets under administration on its platform by 2016.
The platform currently has around £45bn in assets but chief executive Martin Davis says he expects that number to more than double over the next four years across its direct, institutional and retail offerings.
Davis says: “I believe we will have £100bn on the platform by 2016. I am not sure how that will be split across the different parts of the business.”
Davis also says current pricing on platforms will come down.
He says: “I think those wraps that currently charge between 30 and 50bps for the full ‘classic wrap’ service will probably find that most people will be unwilling to pay, with the downward pressure on prices taking its toll. You will probably find those platforms will have to reduce their services and prices.”
Davis adds the platform has seen little uptake on its unbundled pricing model since its launch in September.
He says: “It was inevitable that advisers would continue to take commission and use bundled pricing until they have to make that change.”
Thomas and Thomas Financial Services managing director Darren Lloyd Thomas says: “The attraction of wrap services is that they offer that full service and that is why people use them. I think the comments from Cofunds are self-serving because it has never offered this.”