Net investment sales via platforms fell 30% in the latest quarter to £5.4bn compared to the previous quarter as investors scrambled to protect assets before the Budget.

Gross sales for all platforms fell slightly to £38.3bn in the third quarter, according to the report from platform analysts Fundscape.

In contrast, withdrawals from adviser platforms were lower.

Despite a spike in demand for lump sum withdrawals from pensions, advice channel net sales on platforms rose marginally to £3.1bn.

Gross sales for adviser platforms for the third quarter were £20.7bn.

Bella Caridade-Ferreira, CEO of Fundscape, said that the impact of the Budget on platform sales was less severe than feared.

She said: “Despite the media frenzy around tax hikes, this was the best third quarter in three years. Overall, investors (and advisers) held their nerve. Buoyant stock markets helped.

“Looking ahead to the fourth quarter and 2025, there are plenty of reasons to be cheerful.

"A second interest rate cut, greater appetite for investment, the Trump effect on stock markets, and the gradual reinvestment of the wall of cash that has built up over the last few years. More importantly, Budget measures will increase demand for advice and lead to a shake-up in the popularity of some tax wrappers – flows into pensions and general investment accounts will decline in favour of onshore bonds.”

The FTSE All Share and FTSE All World rose by 1.3% and 6.4% over the quarter, with platform assets under administration rising in tandem to £1.1trn.

Adviser platform assets rose to £683bn.

For the second consecutive quarter, the same three platforms topped the tables for both gross and net flows for the quarter and for the year to date — Quilter, Aviva and Transact.

For the adviser channel, Quilter topped gross sales (£3.1bn) and net sales (£1.4bn) tables during the third quarter.