Research shows more advisers switching platforms

Advisers are increasingly switching clients to new platforms, with close to 30 per cent switching now transferring clients according to new research from Defaqto.

The number of users switching platforms has increased from 21 per cent to 29 per cent since the beginning of 2012, with service remaining the principal reason for changing providers, according to the research company’s 2013 platform service satisfaction survey.

A third of 452 platform users said that the key driver for switching platforms is service, up from 26 per cent in 2012. A further 21 per cent cited flexibility, down from 25 per cent in 2012, while 21 per cent said cost, up from 14 per cent in 2012.

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Defaqto said it has now taken data collated from the study, which has been conducted since 2005, to create service ratings which provide an “unbiased assessment of service based on their peers’ perceptions” to help inform advisers’ choices relating to the providers they use.

Product and service providers that achieve the highest satisfaction scores are rated gold, silver or bronze based on their overall satisfaction score, Defaqto said.

Initially the ratings will cover platforms and they will then be calculated for each subsequent service satisfaction survey undertaken by Defaqto.

Fraser Donaldson, insight analyst for wealth management at Defaqto, said: “We have collected detailed information on advisers’ perceptions of provider service for some time and the findings on switching behaviour from our most recent Platform Service Satisfaction Survey emphasise the importance of service as a key consideration for provider selection.

“Defaqto’s Service Ratings provide a simple ‘at a glance’ view of the level of service offered by providers - as perceived by advisers themselves - and will help inform intermediaries’ due diligence process when researching potential partners.”