Platform switching is taking off: Defaqto

In a poll of 452 platform users conducted by research firm Defaqto, 29 per cent of advisers said they had transferred to a new platform provider compared with 21 per cent last year.

Service is increasingly valuable to advisers, as the number of advisers who cited this as a reason to switch platforms increased from 26 per cent in 2012 to 30 per cent this year.

Cost was also a major factor for 21 per cent of advisers, up 7 per cent from 2012, but the proportion of advisers who prioritised flexibility went down from 25 per cent to 21 per cent over the last year.

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Fraser Donaldson, insight analyst for Defaqto’s wealth management division, said: “We have collected detailed information on advisers’ perceptions of provider service for some time. The findings on switching behaviour from our most recent survey emphasise the importance of service as a key consideration for provider selection.”

Adviser comment:
Kevin Morgan, director of Hertfordshire-based Consilium Financial Planning, said: “You must have an exhaustive due diligence process when looking at suitable platforms – the cake should rise if you have the right ingredients and, if you really do your homework, it reduces the chance of you going back to the client to tell them things have gone awry. We employed a consultant to recommend the right platform for us and, although it wasn’t cheap, it was a worthwhile investment.”