A third (34%) of advisers changed platforms in the last year following the Consumer Duty, mergers and technology updates, according to Defaqto’s newly-released annual Platform Service Review for 2024.

The figure has been steadily climbing, rising from 28% the previous year and 19% in the year before.

Aviva remained advisers’ preferred platform provider based on the greatest number of top three preference positions but Quilter returned the greatest number of first or only choices.

Adviser satisfaction with platforms has fallen in the past year, according to the report, with the average satisfaction scores dropping by seven percentage points.

The annual survey measures how satisfied financial advisers are with their preferred providers and identifies where expectations are being met.

The platform market is largely dominated by Aviva, Quilter, AJ Bell, Fidelity and Transact, with more than 20% of advisers placing these platforms in their top three.

However, with advisers increasingly changing platforms in the past year, AJ Bell climbed one place into third position and Transact moved up to fourth place.

Meanwhile Fidelity Adviser Solutions dropped two places, from third to fifth this year. Hubwise Securities (6%) and Wealthtime (3%) also saw their positions drop, falling out of the top 10 preferred providers. 

In total, 20 providers received sufficient adviser nominations as preferred providers to be awarded a Defaqto service rating. 

The top 10 preferred providers, in order, were: 

1. Aviva, 29%

2. Quilter, 27%

3. AJ Bell, 26%

4. Transact, 22%

5. Fidelity Adviser Solutions, 21%

6. Aegon Platform, 11%

=7. abrdn (for Wrap), 10%

=7. Aegon Retirement Choices (ARC), 10%

=9. abrdn Elevate, 9%

=9. Novia Financial, 9%

The percentages are based on the total (rounded) of first, second or third choice platform for advisers. 

Darren Winfield, insight consultant (wealth management) at Defaqto, said: “The rise in platform changes shows that advisers are becoming increasingly confident making switches to improve experience and accessibility for their clients. This is likely due to the impact of Consumer Duty regulation, alongside the impact of mergers, takeovers and technology updates in the past 12 months.”

He said adviser satisfaction fell in key areas such as new business administration, existing business administration and transition and implementation.

He added: “Combined with industry changes this means that platform providers must continually look to improve service and experience to meet complex adviser needs. Investing in these areas is crucial and brands who become complacent will start to get left behind.” 

• The next issue of Financial Planning Today magazine (Mar-Apr 2023) includes a special report on Platforms. You can subscribe now by registering for Financial Planning Today website and following the instructions or (if you are already register) going to My Account (top right of homepage) to upgrade.