Financial planners not loyal to platforms
Despite the satisfaction with platforms reaching a nine-year high, a new survey suggests 40 per cent of financial planners would happily switch providers for lower fees.
Furthermore, 18 per cent of financial planners would switch platforms for better features.
This is according to Investment Trends' April 2012 Planner Technology Report, which was based on a survey of 1,412 financial planners, concluded in April.
"There is a very strong relationship between satisfaction and switching behaviour," said Investment Trends senior analyst Recep Peker.
"Relative to their market share, platforms with lower overall satisfaction ratings from their users lose a higher proportion of planners to other platforms," he added.
The same report found satisfaction with platform providers has reached a nine-year high, with Asgard Infinity eWRAP receiving the highest rating, closely followed by Colonial First State's (CFS') FirstChoice and FirstWrap.
Peker said the result followed around $130 million invested in new technology by platform providers.
"The platform industry has made significant improvements - the greatest areas of improvement being integration with planning software, BDM and dealer support, and admin fees," Peker said.
BT Wrap, CFS FirstChoice and Macquarie Wrap continue to lead in terms of marketshare, with recent figures showing BT Wrap administered close to 50 per cent of all funds.
Recommended for you
ASIC has released the results of its first adviser exam to be held in 2025, with 241 candidates attempting the test.
Quarterly Wealth Data analysis has uncovered positive improvements in financial adviser numbers compared with losses in the prior corresponding period.
Holding portfolios that are too complex or personalised can be a detractor for acquirers of financial advice firms as they require too much effort to maintain post-acquisition.
As the financial advice profession continues to wait on further DBFO legislation, industry commentators have encouraged advisers to act now in driving practice efficiency.
