Adviser platform assets continue to rise, but the Budget poses challenges, according to our latest UK Adviser Platforms: Autumn Update report.
AUA was up in Q3, with some platforms achieving growth of 4% or more. However, flows have taken a slight hit – especially with ISAs, where flows have been particularly volatile since 2022.
Digging deeper, the gap between gross and net flows is widening for several platforms, suggesting outflows as advice firms consolidate assets onto fewer platforms.
The recent Budget will significantly impact adviser platforms over time. From April 2027, DC pension death benefits will be subject to IHT – so clients will start drawing income from them and older clients in particular could decide to buy annuities, leading to rapid withdrawals of funds.
Financial planning will become even more technical and advisers will have to get more creative, with fewer easy routes available for minimising clients’ tax exposure. Onshore bond use is already rising, according to our platform data.
Platforms and other providers will need to bolster their technical support to cope with advisers’ new demands, especially about life assurance bonds, trusts and capital gains tax. We expect to see substantial changes to financial planning in the coming years and adviser platforms should make sure they’re ready.
We recently published our UK Adviser Platforms: Autumn Update report. For more information, please get in touch.