Few adviser platforms fared particularly well in the final quarter of 2018. Assets shrank by £30bn, with markets firmly in a tailspin and low investor confidence – the FTSE All-Share fell by 11% in Q4 2018.
Most platforms saw a notable drop in flows over the year. DB transfer business continued to slow down for advisers and therefore platforms in 2018. However, despite the weak end to the year, total adviser platform assets grew by 5% over the full year of 2018.
In our latest UK Adviser Platforms report, we’ve been conducting in-depth qualitative research with financial advisers to get to the heart of their platform due diligence processes.
Despite pressure from the regulator, many firms don’t actively segment their clients, viewing PROD as a box-ticking exercise that’s weaker than what they’ve always done on an individual basis. Many advisers operate a panel of platforms and pick the one that’s most suitable for each client. And while platform panels might be reviewed regularly, very few advisers will (bulk) switch clients from a platform that’s fallen off a panel.
When asked how long they expect a client to remain on a chosen platform, the most popular answer from advisers was ‘indefinitely’. Assets can be very sticky indeed!
Year-end adviser platform data as well as key insights from advisers surrounding platform due diligence and their use of platforms can be found in our latest report, UK Adviser Platforms: Issue 37. Download a report outline here.