Since the late 2000s, financial advisers have been increasing their use of ‘platform’ services to administer investment portfolios on behalf of their clients.
Essentially platforms are providers of two main services − technology and investment administration.
One of the main benefits is that investors can view, and advisers can manage, portfolios in one place. Online access means information is available 24 hours a day. As a client of Bosworth Wealth Management you can do this here.
In the unlikely event that a platform (or a UK authorised investment firm which you have invested in through a platform) goes bust, you would be entitled to compensation through the Financial Services Compensation Scheme (FSCS). The amount of compensation is up to set limits and depends on the type of business being carried out. Click here to see further details on these limits.
Platforms also provide or give access to a series of investment accounts or wrappers, in which portfolios can be held, such as self-invested personal pensions and individual savings accounts, both of which provide favourable tax treatment.
The platforms also make the ongoing business of managing investment portfolios easier for investors and their advisers. Straightforward administration and regular reports are helpful features, and regulation from the Financial Conduct Authority monitors advisers to make sure they are meeting professional standards. Here is a link to Bosworth Wealth Management’s entry on the register.