Aviva’s latest Adviser Barometer survey showed that while just over 1 in 10 were unhappy with the platforms they’re using, of these, 72% said functionality, followed by value for money at 53%, were the top reasons for changing.
Concerns about profitability have increased to 30%, up from 24%, echoing the words of AJ Bell’s chief executive Andy Bell, who recently said: “Too many platforms are chasing the mirage of profitability without adequately managing their cost base.”
Newly appointed asset services director for Nucleus Gordon Murray last week described the wrap and platform market as going through “enormous change”.
More advisers were found to be looking for a greater choice of products from platform providers (35%, up from 25% in May), the Aviva report stated.
Tim Orton, chief executive Aviva Adviser Platform, said: “Understandably advisers want to get the most out of their platforms.
“Given recent unsuccessful platform sales it’s unsurprising that concerns about profitability are starting to appear in the market, which is a great opportunity for companies like Aviva with a growth ambition backed by a strong UK based parent company.”
Just over two thirds of advisers said they were using fund ratings providers. Nearly 2 in 5 (38%) used guided fund ranges. And nearly three quarters (72%) would use a portfolio that contains a mix of passive and active funds for mid-market clients.
The survey also showed a third of advisers considered auto-enrolment to be one of the biggest opportunities for them in the next 12 months, up from a fifth last May. Some 22% said that workplace savings was also a big opportunity, up from 10%.
For those who currently operate in the auto-enrolment market, just over half (54%) have seen increased demand from small businesses looking for advice in line with staging dates. This was down from 79% in May 2015.
The Sunset Clause provides another opportunity and challenge for advisers, the survey suggested, with 24% saying that attracting orphaned customers was one of the greatest opportunities in the next twelve months, up from 15% in May 2015.