Figures from the consultancy firm’s 1Q18 Platform Market Scorecard (PMS) show that gross inflows from pension plans to platforms are down 16% on 4Q2017, compared to an overall drop of 5% in total across all investment wrappers.
The Lang Cat said it believed the drop in sales follows a combination of factors impacting the market.
“The Lang Cat believes the combination of professional indemnity issues for advisers, a lack of clear direction from the regulator, platforms taking stock about how compliantly they can compete for business and transfer multiples dropping have all contributed to a slowdown in sales levels,” a spokesperson said.
Buoyant platform market
Further research by The Lang Cat shows, that in pure asset terms, the platform market continues to be buoyant despite ongoing regulatory and market volatility challenges.
Total platform assets under management increased 7.1% year on year (1Q18 compared to 1Q17) to £494bn ($663bn, €563.9bn).
There was also 12% growth in the advised segment to £371bn over the same period.
The Lang Cat’s PMS is published quarterly and provides insight across market activity, platform developments, regulatory, economic, and technological landscapes.
It supplies data on market sizing and trends and looks in-depth at various aspects of platform, proposition, business performance and platform pricing.