Nearly one in three (28%) advisers have changed one or more of their preferred platforms in the last 12 months, according to Defaqto’s new Platform Service Review 2023.
This compares to less than one in five (19%) last year.
Defaqto said the number of advisers changing platforms has been steadily increasing each year since 2018 as advisers grow more confident in seeking out better service for their clients, or wanting to improve the client’s experience and cost.
The annual review, which measures how satisfied advisers are with their preferred providers and identifies where expectations are being met, found that Aviva remains advisers’ preferred platform provider and has increased support by 5% this year, while Quilter came in second place.
Fidelity Adviser Solutions came in third place, while AJ Bell and Transact slipped into fourth and fifth positions respectively.
Defaqto said in total, 16 providers received sufficient adviser nominations as preferred providers to be awarded a Defaqto service rating. Hubwise received the greater increase in support, putting it in eighth place, the ratings and fintech group said.
Darren Winfield, insight consultant 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 eleven service areas, including new business administration, reporting and technical assistance.
Wealthtime and True Potential made a number of appearances in the top three placements for satisfaction across all categories and were joined by Hubwise. Meanwhile, Nucleus Financial Group and Fidelity Adviser Solutions also made five appearances apiece in the top three for satisfaction.
Defaqto said that 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.
