BATH, United Kingdom, 24 October 2024 – Equisoft, a leading global provider of advanced digital solutions to the financial industry, today announced the key findings of its new report into Model Portfolio Services (MPS) usage.
According to a recent market survey conducted by Equisoft, 69% of 500 UK-based financial advisers expect to have more Assets Under Management (AUM) in MPS in future.
This expected growth of MPS could cause a crunch for the platforms on which they run, suggests the report. There are already signs of strains on the system as implementing MPS on platforms often requires significant manual input from advisers and MPS providers. If the number of models increases, and the AUM in MPS expands, financial advisers are warning the eco-system could crash, exposing advisers to a significant regulatory and business risk.
Models are proliferating, with 46% of advisers surveyed currently running between 31 and 50 models on their platform(s) and over 70% expecting to run more in future. Industry commentators increasingly believe this is an open goal for MPS providers and platforms.
Nick Meredith, Products Director at Equisoft, comments on the findings of the forthcoming report: “This is the topic that everyone linked to MPS is talking about. Half of advisers who don’t use MPS are put off by the administrative burden of implementation, which is a real barrier to growth, and something that regulators are already looking at closely.
“Platforms, advisers and MPS providers all need to collaborate to address the administrative difficulties or face the real danger that they are missing out on a significant opportunity, while at the same time potentially exposing their clients to growing risks.”
To download the research, click here.
Media contact: Beth Jarecki, Omnia Paratus, beth@omniaparatus.com