UK adviser platform net flows were down significantly in Q3, despite gross flows being marginally up. Money is therefore still making its way onto platforms, but withdrawals have continued to rise, according to our latest UK Adviser Platforms: Autumn Update report.
ISAs have been hit hardest, recording a sharp drop in net flows. This follows outflows from unwrapped accounts in Q2. The appeal of bank, building society and NS&I accounts will be prompting some of these outflows, given the current interest rates available on cash. Transfers from stocks and shares ISAs to cash ISAs are also a possibility and the cost of living is sure to have some sort of impact on how consumers treat their investments.
Platforms are therefore increasingly about pensions, comprising over half of the total adviser platform assets. Pension pots are sticky and premature cash withdrawals can have undesirable tax implications. We wait with bated breath for tomorrow’s Autumn Statement. A pension ‘pot for life’ – where employees can determine where workplace pension contributions are paid – would bring a welcome boost to platforms, both adviser and direct.
Platforum has recently published UK Adviser Platforms: Autumn Update, our annual update on the adviser platform over Q3. This includes Q3 2023 AUA and flows data as well as an update on our quarterly Platforum User Leaderboard. For more information, please get in touch.