Investment Adviser’s annual platform survey reveals an interesting split among respondents, with more than 53 per cent stating access to model portfolios a very important requirement for their platforms. On the flip side, only 7 per cent of respondents stated access to fully-fledged discretionary fund management solutions as very important, with just over 26 per cent rating it important and the same percentage saying it was thoroughly unimportant.

In a world of outsourcing solutions and risk-profiling clients, model portfolio solutions are clearly a key priority for advisers. More broadly, over a quarter of those surveyed noted ease of use a main driver of platform usage, while the continuing impact of the RDR plays a part for 20 per cent of respondents.

One outcome of the regulatory upheaval of recent years could be seen in the fact that almost three-quarters of advisers now use two or three different platforms, while the remainder use four or more. This is a significant jump from last year’s findings when almost 12 per cent used just one platform and only 6 per cent utilised four.

This increased focus on picking the right platform for a client’s requirement is supported by strong due diligence on the side of advisers, with more than 70 per cent reviewing their platforms’ due diligence once a year or more frequently.

Therefore it is not surprising that when asked what are the most important factors when selecting an investment platform, the top two responses were financial strength and transparency.

The platform industry has seen some changes in recent months, with Aberdeen acquiring Parmenion amid an ongoing flurry of rumours of additional mergers and acquisitions. Advisers seem to be picking up on this trend, with two-thirds suggesting that there will be some form of consolidation in the next 12 months.

So with all the competition, regulation, innovation and development in the platform space, what do advisers want from their platform providers?

There is a sense from some respondents that the technology powering platforms is not quite keeping pace with advisers’ requirements. A considerable 40 per cent suggested some aspects of platform technology are behind the curve.

But the clearest demand from advisers appears to be for more transparency, not just in terms of costs and fees but also their services and relationships with product providers.

The majority of respondents (80 per cent) agreed or strongly agreed that the platform industry needs to be more transparent in declaring their relationships with asset managers and product providers, while the same proportion wants more transparency on the underlying services the platforms provide. A further 60 per cent suggested more clarity on costs and fees, a somewhat revealing figure given the attention that has been paid in recent years to ‘clean fee’ share classes and the unbundling of charges.

While the platform industry is immersed in a period of significant transition, it is clear they remain an essential part of an adviser’s toolkit and as such they need to start delivering what advisers want and need.

Nyree Stewart is features editor at Investment Adviser