The annual CoreData Research Investment Platform Study, based on feedback from 1,056 UK financial advisers, examines more than 40 service level metrics in order to determine overall sentiment towards the various platform offerings. Segmented as large, medium and emerging, Transact was selected as the best overall platform as well as the best large service offering.
Nucleus was chosen as the best medium-sized platform with Parmenion as the best in the emerging category. CoreData Research noted Standard Life rated well within the large category, while Axa’s Elevate did well in the medium category and Novia was highly rated within emerging.
According to the study 97% of investment advisers have used a platform in the past 12 months and more advisers are now using three or four different platforms to conduct their business. Within the next year, almost one in five advisers (19.9%) is likely to add at least one additional platform to their business.
In terms of adviser satisfaction with their main platform provider, the study found that a combination of online transaction functionality (31%), reliability and security of the technology (23.1%) and ease of re-registering assets on and off the platform (21.8%) were the most important.
The study’s research into pricing and service levels revealed almost a third (27%) of advisers cite cost, fees and charging structures as the main factor that would encourage them to select a platform. Ease of use/functionality (22.9%) and good administration and service (19%) were also seen as important cogs in platform selection.
Craig Phillips, CoreData principal for Europe and UK, said: “Adviser sentiment is reflecting what we’re seeing out in the market. The gloves are off as the industry begins to do what every other mature – some may say commoditised – industry does; it begins to compete primarily on price.”
Phillips went on to note that with platforms short of profits to reinvest, systems are under threat of failing, potentially leading to greater human error as under-resourced teams struggle to meet demand. Adviser efficiency will consequently suffer, he said.
“Platforms need to focus on service and justify their charges through differentiated service – not playing ‘me too’ in a game of pricing Russian roulette,” Phillips added.
Within the study, advisers also highlighted that Sipps and other complex pension products; annuities and income drawdown; and discretionary investment management services are areas they would like to have access to on the platforms they use.
