August 2020

Following the launch of Platform Analyser (the lang cat’s due diligence regtech software for advice professionals), we wanted to take our past research, projects, and discussions with advisers to create a white paper looking at best practice for due diligence.

In this free paper we have found that taking a structured approach to research and due diligence results in a better financial advice business and better client outcomes. However, the devil is in the detail, and Let the Suitable One(s) In provides a clear methodology for due diligence including a seven-step process and workable strategies to help with the complexities of real–life application.

The seven–step approach focusses on platforms as an example, but works just as well for CIPs, pensions, adviser tech and other adviser research requirements:

  • Client segments: First identify which segment you’re working on and their needs.
  • Functionality: Work out what functionality matches the segment and knock out platforms that can’t offer it.
  • Business information: Overlay your preferences on financial strength, size and profitability and knock out on that basis.
  • Pricing: Run a comparison based on typical scenarios. Knock out those who charge too much. Include any special deals you know about.
  • Shortlisting: The platforms left are your shortlist.
  • Final selection: Talk to the platforms, visit if possible. Negotiate on price. Make your decision.
  • Lock the report: Narrate each step, finalise the report, adopt it formally.

The vast majority (82%) of advice firms have considered changing where they place their platform business at some point last year, so there’s clearly a regulation requirement for due diligence processes to be undertaken and evidenced.

In creating our Platform Analyser software and producing this free paper, we hope to help more advice professionals to conduct their own robust research and due diligence process at an affordable cost.

To find out more about Platform Analyser take a look at our website here.