Nearly three in 10 advisers (28%) have changed one or more of their preferred platforms in the last 12 months, according to a new survey.
The figure is a significant rise on the previous year when only one in five (19%) changed a platform.
According to figures from Defaqto’s newly-released annual Platform Service Review for 2023, advisers are no longer limiting themselves to a single financial services platform.
Defaqto says this change in strategy may be a move by advisers to “improve experiences” for their clients ahead of the Consumer Duty regulation which arrives this summer.
The annual survey conducted by the ratings and data provider, looks at how satisfied financial advisers were with their preferred providers and identified where expectations were being met.
Aviva remains advisers’ preferred platform provider and has increased support by 5% this year. Quilter remained in second place.
In one of the only moves at the top of the table, Fidelity Adviser Solutions received enough nominations to nudge AJ Bell and Transact into fourth and fifth positions respectively and take third place.
In total, 16 providers received sufficient adviser nominations as preferred providers to be awarded a Defaqto service rating.
Defaqto Survey: Top 10 preferred providers
- Aviva
- Quilter (Old Mutual Wealth)
- Fidelity Adviser Solutions
- AJ Bell
- Transact
- abrdn (for Wrap)
- abrdn Elevate
- Hubwise Securities
- Aegon Platform
- Wealthtime
Source: Defaqto
Hubwise was the platform with the greatest increase in support. The majority of the lower half of the table remained consistent with last year, apart from Advance by Embark and Nucleus Financial Group.
Defaqto added that post-Covid advisers were “more confident” about changing platforms. The number of advisers changing platforms has been steadily increasing each year since 2018, apart from a slight drop in 2021.
Darren Winfield, insight consultant (Wealth Management), at Defaqto, said: “The consolidation of the financial advice market, which means we are seeing a decline in the number of small firms, is also impacting platform distribution deals.
“Advisers are moving clients over to their preferred platform or even becoming platform operators themselves to reduce costs for clients and meet their PROD requirements. Advisers need to have clarity with their choice of platform and be prepared for Consumer Duty and ensure that their platform of choice is also ready.”
Defaqto also identified the top performing providers in 11 service area categories including new business administration, reporting and technical assistance.
Wealthtime and True Potential made numerous appearances in the top three placements for satisfaction across all categories, as they did in last year’s review, and were joined this time by Hubwise.
Nucleus Financial Group and Fidelity Adviser Solutions also achieved a good set of satisfaction scores with five appearances apiece in the top three for satisfaction.
Overall, the industry is meeting or exceeding advisers’ expectations in six of the service area categories. This is up from only four last year, highlighting a marked improvement in adviser satisfaction, Defaqto said.
The full Platform Service Review 2023 is available here.
• Defaqto conducted the survey of financial advisers between August and September 2022.
