PlatformsOct 30 2014

Advisers say platform cost more important than ease of use

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Advisers have picked low charges over ease of use as the most important consideration when picking a platform, according to a new survey from The Platforum

In a survey of 369 advisers in October asking them to list the top five most important factors when choosing a platform, 73 per cent of respondents picked ‘low charges’.

Rounding out the top three was ‘usability’, chosen by 72 per cent of advisers, and ‘service’, which scored 64 per cent.

The results present a stark change from the same survey from last year, in which usability was ranked as the most important factor, chosen by 76 per cent of advisers, while low charges lagged behind with 65 per cent.

Richard Bradley, head of data at The Platforum, said: “Over the years we’ve been running our adviser survey, we’ve seen advisers consistently ranking usability as more important than cost when looking at platforms, although cost has been steadily rising in importance.

“Fund managers, platforms and advisers are all currently feeling the squeeze when it comes to fees, which appears to be shifting price higher up the agenda for advisers looking at platforms.”

Mr Bradley added: “As it is the client that is paying for the platform, fees are clearly important. However, ensuring that a platform provides an appropriate level of functionality and support is vital – both to the client and adviser.

“The focus should be on value for money rather than simply cost. Hopefully the FCA’s Thematic Review on due diligence, due in 2015, will provide some more clarity for advisers looking to balance cost to clients against functionality and service.”

The other option picked by more than half of advisers were ‘functionality’ and ‘tax wrapper choice’, which both remained roughly similar to last year’s survey.