Financial planners not loyal to platforms
Despite the satisfaction with platforms reaching a nine-year high, a new survey suggests 40 per cent of financial planners would happily switch providers for lower fees.
Furthermore, 18 per cent of financial planners would switch platforms for better features.
This is according to Investment Trends' April 2012 Planner Technology Report, which was based on a survey of 1,412 financial planners, concluded in April.
"There is a very strong relationship between satisfaction and switching behaviour," said Investment Trends senior analyst Recep Peker.
"Relative to their market share, platforms with lower overall satisfaction ratings from their users lose a higher proportion of planners to other platforms," he added.
The same report found satisfaction with platform providers has reached a nine-year high, with Asgard Infinity eWRAP receiving the highest rating, closely followed by Colonial First State's (CFS') FirstChoice and FirstWrap.
Peker said the result followed around $130 million invested in new technology by platform providers.
"The platform industry has made significant improvements - the greatest areas of improvement being integration with planning software, BDM and dealer support, and admin fees," Peker said.
BT Wrap, CFS FirstChoice and Macquarie Wrap continue to lead in terms of marketshare, with recent figures showing BT Wrap administered close to 50 per cent of all funds.
Recommended for you
ASIC has launched court proceedings against the responsible entity of three managed investment schemes with around 600 retail investors.
There is a gap in the market for Australian advisers to help individuals with succession planning as the country has been noted by Capital Group for being overly “hands off” around inheritances.
ASIC has cancelled the AFSL of an advice firm associated with Shield and First Guardian collapses, and permanently banned its responsible manager.
Having peaked at more than 40 per cent growth since the first M&A bid, Insignia Financial shares have returned to earth six months later as the company awaits a final decision from CC Capital.
