Nearly 3 in 10 (28%) of advisors have changed one or more of their preferred platforms in the last 12 months, according to new research.
This number is up significantly from the previous year, when only 1 in 5 (19%) changed platforms.
Advisors are no longer confined to a single financial services platform, according to Defaqto’s newly released 2023 Annual Platform Services Review figures.
Defaqto said the change in strategy could be a move by advisers to “improve the experience” for their clients ahead of consumer tax regulations that take effect this summer.
An annual survey conducted by ratings and data providers examines how satisfied financial advisors are with their preferred providers and identifies where expectations are being met.
Aviva continues to be Advisor’s preferred platform provider, with a 5% increase in support this year. Quilter remained in second place.
In one of the only moves at the top of the table, Fidelity Adviser Solutions received enough nominations to move AJ Bell and Transact to 4th and 5th place, respectively, to take 3rd place.
A total of 16 providers received sufficient advisor nominations as preferred providers to be awarded the Defaqto Service Rating.
Defaqto Survey: Top 10 Preferred Providers
- Aviva
- Kilter (Old Mutual Wealth)
- Fidelity Advisor Solution
- AJ Bell
- trade
- abrdn (for rap)
- abrdn promotion
- hubwise securities
- aegon platform
- wealth time
Source: Defacto
Hubwise was the platform with the biggest increase in support. Most of the bottom half of the table remained the same as last year, with the exception of Embark’s Advance and Nucleus Financial Group.
Defaqto added that post-Covid advisers are “more confident” about the platform changes. The number of Advisors replatforming has steadily increased each year since 2018, with the exception of a slight decline in 2021.
Darren Winfield, Insights Consultant (Wealth Management) at Defaqto, said:
“Advisors are transitioning clients to their preferred platform or becoming platform operators to reduce client costs and meet PROD requirements. You have to be prepared and you have to make sure the platforms you choose are ready too.”
Defaqto also identified top performing providers in 11 service area categories, including new business management, reporting and technical assistance.
Similar to last year’s review, Wealthtime and True Potential appeared a number of times in the top three placements for satisfaction across all categories, now joined by Hubwise.
Nucleus Financial Group and Fidelity Adviser Solutions also achieved good satisfaction scores, ranking in the top three satisfaction rankings five times each.
Overall, the industry meets or exceeds advisor expectations in six service area categories. This is up from just four he had last year, indicating a marked improvement in advisor satisfaction, Defaqto said.
Full Platform Service Review 2023 is available here.
• Defaqto conducted a survey of financial advisors from August to September 2022.