Upcoming reforms continue to steal the focus of platform development with client demand continuing in this area, according to research from Investment Trends.
The researcher house's 2012 Platform Report found that as the details surrounding regulatory changes become clearer, platforms have turned their attention to improving adviser compliance.
"A lot of platform providers have been focused on compliance and this has pulled platform providers away from releasing new widgets for financial planners," Investment Trends senior analyst Recep Peker told InvestorDaily.
"Instead of new functionality there has been a compliance focus."
As a result of this focus, Investment Trends found that new development spending in the sector fell over 2012 to $100 million, from $130 million in 2011.
The report found that many platform providers were holding back on aspects of development until legislation surrounding the reforms was finalised.
"Some of the tools they haven't released yet are just waiting for legislation to be finalised," Mr Peker said.
"Most of the functionality is built, but they're saying they'll just make a few tweaks and then release it."
Investment Trends said that planners highlighted improved reporting as their most sought-after enhancement from their platform, as many look to improve their value propositions.
As a result of this client demand, platforms have been focused on improving client review reporting and transactions in light of changes taking place due to Future of Financial Advice (FOFA).
"The main challenge is just the amount of work that opt-in and fee disclosure will involve," Mr Peker said.
"We do ask planners to tell us in their own words what they're worried about and we're hearing them say, 'It's just going to be too much of an administrative burden on my business if I don't have the right systems in place.'
"So platform providers are building tools to address these things."
