Aegon says market must shrink to handful of platforms

Mr Grace said: “Clearly the most important thing for us tactically at the moment is to get these enhancements in place. We have 10,000 advisers and satisfying their needs is the most important thing for us.”

Stephen McGee, chief financial officer at Aegon UK, added: “We have a shopping list from advisers which we are working through in terms of what will give the biggest bang for the buck. 

“We are committing an extra £15m over the next 6-9 months to make sure we put in place the enhancements that advisers are wanting.”

Aegon said the net outflows of £2.6bn on the platform were due to a drop in the number of big institutional clients. 

According to data from the Lang Cat also out this morning, advised platform assets under administration in the UK grew 4.46 per cent in the second quarter of the year, but netflows have shrunk.

While gross inflows increased 2.93 per cent in the advised market to £14.2bn, net flows were down 1.76 per cent in the quarter, from £5.3bn to £5.2bn, meaning the difference between money being put in and taken out has shrunk.

The consultancy’s analysis showed that year on year, the reduction in net sales was even more significant, pointing to a decrease in the advised channel of 44.76 per cent.

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