Advisers' platform loyalty wanes
Netwealth has again emerged as the preferred investment platform for financial advisers, but neither it nor other platform providers should get too relaxed in circumstances where advisers are demonstrating less platform loyalty and a willingness to change providers.
That is the bottom line of new research released by Investment Trends which had shown that 29% of planners had stopped placing new business on a platform and increased their switching activity.
The research also pointed to some changes with respect to advice software with AdviserLogic taking the laurels in terms of adviser satisfaction ahead of Midwinter and Xplan.
Investment Trends research director, Recep Peker, said the company’s research suggested platform relationships were being challenged by the twin headwinds of the Royal Commission and the global pandemic.
“Not only has platform switching reached a post-Global Financial Crisis high, planners are also broadening the range of platforms they use,” he said. “The average planner uses 2.6 platforms each, reversing the consolidation seen in the last two years (up from 2.3 in 2018 and 2.1 in 2019).”
“In the face of pandemic-induced market volatility, financial planners are relying heavily on platforms for high quality service and support, with minimised service disruptions,” he said.
Peker said the research showed that, industry wide, planners were generally satisfied with the support provided by their platforms through the COVID-19 pandemic (77% rated it as ‘good’ or ‘adequate’), but there was room to improve since almost a quarter (23%) were dissatisfied.
He said the pandemic and associated lockdown had transformed the way financial planners communicated and engaged with the clients, further accelerating their adoption of digital tools.
In terms of adviser satisfaction with platforms, the Investment Trends research once again placed Netwealth at number one, followed by HUB24, CFS FirstChoice, BT Panorama and Macquarie Wrap.
Recommended for you
Stellan Capital’s new CEO Jim DeCarlo says he will use his US experience to organically double the firm’s assets to $2 billion within 18 months, and believes overseas PE firms have a role to play in the Australian market.
The corporate regulator has announced its first adviser banning of the year with the permanent ban of a Queensland-based former adviser that was sentenced to seven years’ imprisonment.
Brisbane-based Wealth Architects has announced two acquisitions as it continues its path into regional Australia and branches out into life insurance.
Entireti, Australia’s largest financial advice licensee owner, has welcomed its first chief investment officer to drive its research and investment services team.
