7th July 2011

Defaqto publishes results of annual platform satisfaction survey

Independent financial research company Defaqto has today published its Review of platforms service which, based on its annual satisfaction survey of platform users, highlights:

• The aspects of platform service that advisers consider most important
• Whether the platform providers they deal with are meeting their expectations in these areas
• Which specific providers are providing the highest quality service across the different areas reviewed

Defaqto’s survey of 232 advisers using platforms found that 25% have changed provider in the last year.  The service they had received from their platform provider was the most significant driver behind advisers’ platform switching activity, with 53% stating they had changed provider for service-related reasons.

To determine which aspects of service advisers consider to be most important and to what extent their platform providers are meeting their expectations, Defaqto asked advisers to rate platforms in relation to 37 aspects of service across the following eight categories:

• General perceptions they hold about platform providers, including their integrity and the ease of doing business with them
• The process involved in making the transition to, and implementing business on, a platform
• A platform’s administration of new business
• A platform’s administration of existing business
• The level of service provided by staff at the platform
• The design and management of the platform
• The standard of a platform’s reporting
• A platform’s E-business capability, including the reliability of their systems and the standard of technical support they provide

The table below sets out the 10 service aspects that advisers consider to be most important – comparing the findings of this year’s survey to their ranking in 2010 – and whether the advisers surveyed perceive that platform providers are meeting their expectations in these areas: 

Fraser Donaldson, Defaqto’s Insight Analyst for Funds, said:

“Our survey of platform users shows that service is by far the most important factor driving advisers’ platform switching activity – and this clearly demonstrates that it is not just the platform proposition that matters to them, but also the intangible benefits they need from the relationship. In this vein, it is interesting to see what advisers expect when it comes to service and what standard of service they believe they are actually receiving from the platforms they use.

“We have found a mixed picture across the service categories and individual aspects of service that we looked at.  Interestingly, for many areas of service advisers consider to be most important it appears they don’t believe their expectations are being met.  Conversely, at the other end of the spectrum, there appears to be overall satisfaction with elements that advisers generally consider to be less important to them.

“The RDR has been a major catalyst for platform adoption, and with 2013 fast approaching we are likely to see platform adoption and use grow further still.  From an adviser’s perspective, when selecting a platform they are effectively entering into a long-term business partnership.  As a result, it is important they choose a platform that meets the needs of their business and, ultimately, those of their clients.  Robust due diligence is key and central to this will be the availability of independent analysis to support an adviser’s selection process.”

The guide can be downloaded, free of charge, at: www.defaqto.com/adviser/ifa/guides.

Defaqto’s IFA research tool – Engage – provides ratings on two key aspects of platforms to help IFAs with platform selection and due diligence:

• Star Ratings – these ratings are based on the results of Defaqto’s IFA platform service satisfaction survey and indicate the level of service advisers have experienced from the platform operators they deal with.  Star Ratings give each platform operator an independent rating of 1 to 5.
• Platform financial strength ratings – launched in December 2010, these ratings (provided by actuarial firm AKG) indicate a platform operator’s ability to survive for the long-term to deliver on users’ expectations.   

Defaqto also provides bespoke consultancy services for IFAs, including assistance on platform due diligence.

RDR