Skip to content
International Adviser
  • Contact
  • Login
  • Subscribe
  • Regions
    • United Kingdom
    • Middle East
    • Europe
    • Asia
    • Africa
    • North America
    • Latin America
  • Industry
    • Tax & Regulation
    • Products
    • Life
    • Health & Protection
    • People Moves
    • Companies
    • Offshore Bonds
    • Retirement
    • Technology
    • Platforms
  • Investment
    • Equities
    • Fixed Income
    • Alternatives
    • Multi Asset
    • Property
    • Macro Views
    • Structured Products
    • Emerging Markets
    • Commodities
  • IA 100
  • Best Practice
    • Best Practice News
    • Best Practice Awards
  • Media
    • Video
    • Podcast
  • My IA
    • Events
    • IA Tax Panel
    • IA Intermediary Panel
    • About IA

ANNOUNCEMENT: Read more financial articles on our partner site, click here to read more.

SIGN IN INTERNATIONAL ADVISER

Access full content on the International Adviser site, access your saved articles, control email preferences and amend your account details

[login-with-ajax]
Not Registered?

UK advisers to reduce platform usage amid cost-of-living crisis

By Robbie Lawther, 11 Oct 22

Providers ‘may be in for a bumpy ride over the next few months’

Financial advisers are set to place less business on platforms as UK investors grapple with the cost of living crisis, research by CoreData has found.

The firm surveyed 420 UK advisers and found 33% plan to increase business on their main platform over the next 12 months – down from 44% in 2021.

The slowdown in expected platform flows is translating into less frequent usage. The proportion of advisers using platforms daily has plunged to 55% from 71% in 2021.

Daily platform usage among advisers focused on mass market clients has fallen particularly sharply (48% vs 73% in 2021).

Products

The report also shows the certainty of annuities is proving a strong pull amid ongoing market volatility.

Annuities and income drawdown remain the most in-demand products on adviser platforms and have grown in popularity (31% vs 25% in 2021). This reflects better annuity rates in 2022 which are linked to rising gilt yields and interest rates.

The second most popular products on platforms are full self-invested personal pensions (24% vs 22% in 2021), followed by discretionary investment management services (18%), which fell from 19% in 2021).

Adviser demand for investment trusts (10% vs 15% in 2021) and ETFs (6% vs 8% in 2021) has also dropped amid falling equity markets.

Choices

The CoreData study also showed Transact is the most used platform, followed by Quilter, Aviva and Abrdn.

It also found service, functionality and retirement advice services remain the top three satisfaction drivers, showing the ongoing importance of platforms performing well in these core areas.

Elsewhere, the top allocation driver prompting advisers to use one platform over another is better value for the client, highlighting a client-first mentality ahead of the incoming Consumer Duty rules.

This is followed by simpler to use, better reporting and low error rate.

The client-centric approach is further evident in attitudes towards vulnerable clients. More advisers this year said they consider tools and support services to help manage vulnerable clients when choosing a platform (53% vs 45% in 2021).

Andrew Inwood, founder and principal of CoreData, said: “Platforms may be in for a bumpy ride over the next few months as the cost-of-living crisis and volatile markets dent investor sentiment and fund flows. Those platforms able to support advisers best through a sublime service offering, flawless functionality and wide product range will emerge as winners.”

Tags: UK Adviser

Share this article
Follow by Email
Facebook
fb-share-icon
X (Twitter)
Post on X
LinkedIn
Share

Related Stories

  • Latest news

    Nucleus survey shows advisers struggling with regulation

    Latest news

    Reports: Chancellor to shelve cash ISA allowance cuts

  • Sanlam to take over Moroccan insurer in $1bn deal

    Investment

    Jupiter buys CCLA in £100m deal

    How to save the pan European pension dream

    Latest news

    Aegon urges government to ‘move the dial on pensions adequacy’


NEWSLETTER

Sign Up for International
Adviser Daily Newsletter

subscribe

  • View site map
  • Privacy Policy
  • Terms and Conditions
  • Contact

Published by Money Map Media – part of G&M Media Ltd Copyright (c) 2024.

International Adviser covers the global intermediary market that uses cross-border insurance, investments, banking and pension products on behalf of their high-net-worth clients. No news, articles or content may be reproduced in part or in full without express permission of International Adviser.