Consumer trust isn’t something to be taken for granted, but reports from the UK, US and here at home are all pointing towards an uplift in trust levels around financial advice, which can only be a welcome development.
There are significant tailwinds behind the financial advice industry at the moment, but some major obstacles are still preventing advice practices from taking advantage of surging demand according to a new study from CFS.
Mason Stevens’ platform rating surges amid IPO chatter
The Mason Stevens investment platform has scored the biggest increase in functionality for a second year running, according to researcher Investment Trends, which pitched the group nicely for an expected initial public offering in the coming year.
After securing the services Andrew Walsh – the former IRESS chief executive who founded the popular X-Plan customer relationship management tool – earlier this year, the group now has what Investment Trends sees as the fastest moving investment platform on the market.
In the research group’s recent 2022 Platform benchmarking and competitive analysis report, Mason Stevens came in fifth with a score of 83.3 per cent, behind BT Panorama (84.7 per cent), Praemium 89.9 per cent), Netwealth (90.7 per cent) and HUB24 (91.5 per cent).
For the second year running, however, Investment Trends reported Mason Stevens had the “largest relative increase in score”, which would have the leading market disruptors looking over their shoulder.
The firm, which provides a full-service investment platform on top of specialist investment support functions, is making ground on both the newer providers and the incumbents by focusing on managed account enablement and product flexibility. According to Investment Trends, this has been the key to securing new investors on the platform.
“All platforms have particularly sharpened their focus on the investment menu,” Investment Trends director Paul McGivern stated.
“Managed accounts continue to appeal to advisers for the benefits they provide to both clients and advisers, and platforms have significantly expanded the number of models and managers they offer, as well as editing and tax optimisation tools to enable greater adoption,” the researcher added.
The timing of the research is sweet for Mason Stevens, which has invested in some high-profile hires recently.
After ex-UBS and Westpac executive Tim Yule (pictured) took over as CEO in early 2022, Mason Stevens brought fintech specialist Vien Luong as its head of platform and ex-FNZ executive Tracy Southern to act as head of technology in January 2023. Weeks later, the group announced it had nabbed Walsh from IRESS and given him the role of board chairman.
Yule confirmed to mainstream press in late 2022 that the group was looking to take on new investors in order to expand into the almost trillion dollar wealth platform market, with a listing on the ASX expected to be announced some time this year.
The firm, which was established in 2010 and has about $6 billion in funds under management and administration on its platform. is rumoured to have sold almost 40 per cent of its stock to pre-IPO investors and clients in 2022.
