Given that time is “of the essence for advisers preparing for Retail Distribution Review (RDR) implementation, identifying platform providers that can process new client applications swiftly should form an essential aspect of the due diligence process” for advisers when they are choosing a platform, the research suggests, according to Defaqto.
Defaqto questioned 345 financial advisers who use investment platforms, asking them to rate 37 aspects of provider service across eight categories, which included such features as provider perception, transition and implementation process, administration of new business, administration of existing business, and platform design and management.
A similar survey last year found “ease of doing business” was rated the most important aspect of provider service, but this year, “this was found to be the fourth most important” consideration, Defaqto said.
‘Processing timeliness’
“In contrast, ‘processing timeliness’ has risen up the rankings, having been rated as the third most important service aspect in 2011, but of paramount importance this year.”
Fraser Donaldson, Defaqto’s Insight analyst for funds, said that most financial advisers are currently concentrating on becoming RDR-ready, and as part of this, are actively looking to move their “suitable clients” to a platform.
“Most advisers will want to have their clients in place on the most suitable platform in time for RDR implementation, so it is no wonder that the speed of client processing is of the essence” right now, he added.
“Determining the speed with which key administrative tasks are carried out should be an essential part of due diligence for advisers researching potential product and service partners. All platforms have seen considerable growth in assets, and how they are coping with increased scale administratively is crucial.”
To read and download the DeFaqto report, which is entitled A Review of Platform Service 2012, click here.
