HUGE POTENTIAL GROWTH IN PLATFORM ADOPTION – OVER 8,000 IFAS STILL TO EMBRACE TECHNOLOGY
Data from MyTouchstone provides insight into IFA platform usage
London, September 2012 – New analysis from MyTouchstone, the market leading IFA database, which is operated by Equifax’s Touchstone Financial Analytics, confirms that platform use continues to rise within the UK Adviser community, however a large number of firms are still yet to adopt a platform and experience the benefits they could add to their business.
Key data from the MyTouchstone database shows that 164 IFAs started to use platforms for the first time in Q2 2012 building on the 188 that started using in Q1 2012. Additionally there was an increase in the number of IFAs that placed all of their business via platforms in Q2, highlighting that increasing numbers of IFAs are recognising the full benefit of integrating platforms in their business strategy.
Perhaps what is surprising however, is that 8,400 firms have still yet to adopt a platform. General market consensus is that more and more firms will adopt a platform, particularly in the run up to and post RDR.
A percentage of these firms may cease to trade when RDR comes into effect, which could explain the lack of willingness to adopt a platform at this stage. However, with a significant number of firms expected to remain active in the market and with the increasing efficiencies offered by platforms, it is reasonable to assume platform use will continue.
“The data demonstrates that the trend towards platform use marches on, although many IFAs are still to recognise the full benefits of platforms,” said Peter Welch, IFA Key Account Director for MyTouchstone. “Although the number of IFAs placing all new business “off” platform is slowly decreasing, our data shows there is still a significant segment of the market still to adopt a platform partner. With RDR just around the corner, many firms may be deferring platform adoption until after they have made the transition. Those firms yet to select a platform can access detailed information on market trends and advice on Platform due diligence and selection via the MyTouchstone Platforms page.”
Key data for Q2 2012 shows:
- 488 IFAs placed all of their business via platforms in Q2’12 up from 425 in Q1’12
- 8,400 IFAs placed all of their business “off” platform in Q2’12 down from 8,594 in Q1’12
- "On" platform new business via IFAs was £3.4bn in Q2’12 (22% of IFA market), down from £3.66bn in Q1’12
- "Off" platform new business via IFAs was £12.4bn in Q2’12 (78% of IFA market), down from £13.6bn in Q1’12
“With RDR fast approaching, we believe that platforms can play a big part in making the transition easier for IFAs,” continues Peter Welch. “The choice of platforms available in the UK market continues to grow, with 30 potential partners available presently. It is no surprise that with everything IFAs have on their plate ahead of RDR, some may not have found the time to perform the necessary due diligence and come to a decision on which platform to partner with. This may be exacerbated by the FSA’s view that it is very unlikely that just one platform will be appropriate for all clients needs, meaning IFA firms have to carry out significant platform due diligence on a multitude of firms. IFAs should visit the MyTouchstone site now to see the wealth of data available from Touchstone and key partners such as ThePlatforum.
The data, available on the Platforms section of the MyTouchstone website, is provided in partnership with ThePlatforum, the UK’s leading independent specialist on platform and wrap research. “More than 1,000 IFAs log on to the MyTouchstone database every month to upload fresh data, making the system highly reflective of the current market activity. The partnership that we have with ThePlatforum enhances the capabilities of our database and allows us to monitor platform usage by IFAs.”
To find out what the Top 10 favoured combinations of platforms in the UK today, visit www.MyTouchstone.co.uk
To find out more, customers can contact Touchstone on 01236 722 000 or email email@example.com
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Touchstone Financial Analytics and IXI
Touchstone is the UK’s leading provider of strategic IFA intelligence to financial product providers, delivering powerful benefits to its users. It operates a shared investment product data exchange with information provided by over 90 of the UK’s leading financial services companies. It also operates the MyTouchstone database which is powered by the collective sales data of 77 major product providers, fund managers and platforms and inputs from thousands of IFAs to help IFAs understand how they perform compared to the other IFAs in their post area and across the UK.
Equifax Inc acquired US wealth data specialist, IXI, at the end of 2009. The IXI Corporation has been directly-measuring consumer wealth in the U.S. for the past 15 years.
The unique combination of Touchstone Financial Analytics and IXI is set to bring an unparalleled understanding of consumer wealth and purchase behaviour to the UK for the first time.