My parents recently visited me in Dubai, which is always a treat. One day, when we met with friends for a drink, the conversation turned to work – as it so often does – and my mum was asked to explain what I do for a living, says Mark Maplesden, Novia Global’s principal representative officer in Dubai.
“Well,” she said, “he wears a suit, he talks a lot, and it’s to do with money.”
Believe it or not, this wasn’t a question of Mum having zero interest in my career. What she was actually demonstrating is that she doesn’t fully understand investment platforms – and she’s far from alone in that regard.
Platforms have been around for several decades now, but there are still plenty of people who are unaware of what they’re capable of. This is especially the case in offshore markets, where personal finance frequently remains perceived as an arena defined by inflexible products and suboptimal solutions.
Historically, a major reason for this has been that very few platforms were designed expressly with overseas advisers and clients in mind. While the UK market is nowadays close to saturation point , there are still many countries where non-DIY platforms are relatively scarce.
As a result, the range of choices has routinely been seen as underwhelming, unattractive and potentially expensive. I would frame things a bit differently, to say the least.
As a representative of a platform that specifically strives to meet the unmet needs of overseas advisers and clients, I like to think what we do has considerable appeal. Crucially, I also like to think it’s perfectly straightforward.
In essence, we aim to look after a client’s money, help it grow and then give it back. We do this by facilitating access to leading investment houses, funds and solutions. The process should involve no commission, no penalties, no issues and no unpleasant surprises.
For all this to happen, in my opinion, a platform must possess certain key attributes. Below are three that can be of particular benefit to overseas advisers and clients.
1. Transparency
By adhering to the highest regulatory standards, platforms can bring genuine confidence and clarity to investing overseas. With a platform such as ours, which is regulated by the UK’s Financial Conduct Authority, this includes charging no commission.
Many providers now offer what are essentially international versions of their onshore platforms. These have none of the shortcomings associated with investing overseas in the past, such as complex structures, indecipherable terms and conditions, lengthy lock-in periods and a general lack of openness and accountability.
2. Efficiency
The technology that underpins platforms is intended to make investing easy. Features such as online access, streamlined administration, at-a-glance research and enhanced reporting should ensure every stage of the journey is seamless.
A significant plus in terms of overall efficiency is the ability to hold a variety of assets in one place. These might include investment accounts, SIPPs and ISAs, all of which can be maintained under the same management and advice. This facility is vital to clients’ peace of mind.
3. Value
Transparency and efficiency translate into value. The best platforms tend to be low-cost, with no hidden charges, unexpected adviser fees or other nasty shocks somewhere down the line.
Importantly, value is also delivered through institutional buying power. Platforms can open up a vast investment universe, with a broad array of opportunities available through a single entry point.
Naturally, there are other factors that might be mentioned in outlining a platform’s purpose and appeal. But I feel those discussed above, on balance, cover most of the bases.
To underscore the argument, it’s useful to briefly imagine what it would be like to invest in circumstances in which these attributes were nowhere to be found. It would likely be an extremely frustrating exercise.
The chances are that it would mean having to deal with numerous portals, passwords and providers. It might require a tangled web of communication, correspondence and even paperwork. It would very probably be hugely time-consuming and costly – not to mention confusing.
None of this hassle is necessary today, because platforms ultimately serve as an engine of simplification. A big part of their role is to handle the heavy lifting that used to make personal finance such a chore.
Remember, too, that destinations such as Dubai, the United Arab Emirates and elsewhere are no longer just places where expats might choose to relocate temporarily before returning home. Extended or even permanent residence in these countries is now increasingly likely.
Investment products need to reflect this major demographic shift. In my opinion, none is better equipped to do so than an international platform.
By Mark Maplesden, Novia Global’s principal representative officer in Dubai
