Every quarter, as part of the Adviser Platform Guide, Platforum takes the temperature on what advisers really think of platforms. A number of issues have been getting advisers’ goats but there are some gold stars in areas where platforms are getting it right (or in some cases are at least not getting it wrong):
On communication:
This quarter, platform communication issues appear to be really irritating advisers across the spectrum of platforms. Many platforms could do better at communicating with advisers and at listening when advisers communicate problems to them.
One adviser sounded particularly resigned after communicating a technology failure to his primary platform: ‘a flash warning about the EU, Brexit and property funds has popped up. I can’t switch it off and I have asked them to switch it off…so I have learnt to live with it.’
Another questions why platforms don’t ask for more feedback from advisers:
‘I dislike the fact that they think the documents are useful but if they actually asked advisers what they want, they would realise they are pointless and no use to us at all.’
But some platforms get good feedback. In the case of the Standard Life/AXA Wealth Elevate deal:
‘We have had lots of communication from AXA Wealth Elevate…it will come down to the terms but we won’t be heading to jump ship.’
One Parmenion user praises the platform for making good on its promises: ‘They do exactly what they say they are going to do and I like what they offer’
Listening is also important. Advisers recognise that problems do arise and are appreciative when they get resolved:
‘…dislikes are just a couple of niggles which I’ve fed back to them and they’ve sorted them, they do listen.’
And irate when they don’t:
‘…I get issues creating work for me as they cannot get a simple statement correct. When we talk to them the rep is far removed from the decision makers that nothing happens.’
On price:
Many advisers we have spoken to are philosophical about platform charging. Whilst it is one of the most important factors when looking at a new platform, advisers that we have spoken to feel that platform prices are in a fairly tight range and that difference in price are not as great as it used to be:
‘Price is not the main consideration’
‘Platform pricing is all fairly consistent now. Some are a bit more expensive but the differences are not as great as they used to be… pricing has come down.’
One adviser that we spoke to today made an extremely salient point that the cost to the client of using a particular platform is not just about the platform charge – lower levels of support and service (depending on what the client needs) can add in layers of cost:
‘X platform is cheaper but Y platform will do a lot more work on our behalf. So for clients on X platform, the costs of our annual service to the client is a lot more because we have to pick up the work and we bill by time.’
On technology: re-keying and going paperless:
Whilst communication stands out this quarter as being advisers’ top pet peeve, re-keying and paper-based platforms are evergreen irritants:
‘One of the biggest challenges is the continuous repetition of the input of data… the time is so right for people to bring them into the 21st century but providers are sitting on their hands.’
‘I dislike the fact that Platform X don’t require any paperwork for adding clients to the platform but if they need to make any changes i.e. increase costs or take a withdrawal, paperwork and wet signatures are required.’
On service and support:
This is a mixed bag. On a certain platform’s call centre, one adviser comments on his experience: ‘It’s like they have shaved a chimp and given it a phone.’
For a number of platforms, however, service has received high praise like this comment: ‘Nice to talk to individuals – we have a team that we always talk with.’
On functionality:
Real-time trading on equities is an area where platforms (that don’t offer it) could pull their socks up and it has been mentioned a few times:
‘The only thing we would like is real time trading on equities’
‘Real-time trading on equities would be nice.’
And of course ETFs and Investment Trusts get a mention – but after the Aegon Cofunds deal and once Old Mutual Wealth re-platforms, this functionality should be in place on all platforms, which is good news.
We will look in more depth at platform performance and the future health of platforms in the next Adviser Platform Guide – out the first week in September.
And finally… on Brexit:
We thought that we would leave you with the wittiest Brexit quotes we have received. Although the topic is perhaps a bit outmoded now – even Farage has seemingly moved on – Brexit has given us some excellent quips from advisers and platform people alike:
On the impact of Brexit on clients’ attitudes towards their investments:
“There would be no difference as they are educated.”
For the classicists among us:
‘I think Thucydides forecast the post-Brexit sentiment early.’
In explanation of a photo sent by email that had somewhat dumbfounded me:
‘Decent old chap stalks out of [offices of a certain direct platform] confident of Brexit and his own immense good sense in buying direct. It’s just like Laithwaites without the free corkscrews.’
Have a great Bank Holiday weekend and if you are whiling away some time on a train in the great bank holiday get away – play our Platforum 2016 game and you could get 20% off a ticket to the Platforum 2016 conference.