Question

1/. Define open architecture.

2/. Do you think it will increase or decrease in importance to the intermerdiary and direct distribution channels?

Answer 1

1. Open architecture is defined as the ability of financial institutions to offer clients both external and proprietary products and services.

Open architecture ensures that a client can satisfy all financial needs and firm acts in best interest of client .

Open architecture can improve client's asset allocation and provide better returns as client has got to choose from a variety of service providers.

2. It will reduce btye importance of direct distribution channels and intermediary as it offers with a variety of options to choose from, so it's less personal and promotes transparency and the importance of distribution channels has been completely eliminated as open architecture helps them in selecting with the best funds available according to client's needs.