Independent financial advisors (IFAs) are a key distribution network for investors in the UK. Product providers will do well to understand the priorities and criteria advisors use in selecting their investment partners and platforms, particularly with a growing tendency to cooperate with discretionary fund managers (DFMs). As nearly all advisors in the UK use a platform (or multiple) to manage their clients’ assets, understanding why certain platforms are favored above others remains crucial. Online access to platforms is important for IFAs, which will continue to leverage digital capabilities to remain relevant.
- UK fund platforms continue to grow their market share by providing both advisors and direct investors with access to a range of products. In 2015 these platforms accounted for 52% of industry gross retail sales.
- The attractiveness of products is driven by cost along with the quality of administrative and reporting functions. Beyond these two features, the investment fund range is also important to advisors.
- Investment product providers are regularly assessed by IFAs, with 47.3% carrying out reviews more than once a year.
“UK IFAs, Investment Managers and Platforms 2017” is a comprehensive analysis of the features and preferences of UK investors and IFA clients. Drawing from our proprietary IFA Survey, the report offers insight into platform characteristics, what drives IFAs when selecting platform providers, and demand for DFMs.
Specifically the report:
- Examines the role IFAs have in providing financial services.
- Details market developments and the evolving landscape of the UK market.
- Analyzes the most important features IFAs consider when selecting platforms.
- Identifies the companies that offer the most attractive platform packages.
- Examines the criteria for selection of pension fund providers.
Reasons To Buy
- Comprehensive overview of what investment product and platform features are of interest to IFAs.
- Insight into the IFA market from our UK IFA Survey.
- Identify how to remain competitive by understanding IFA preferences.
Table of contents:
Critical success factors
IFAS ARE A KEY DISTRIBUTION CHANNEL
Retail fund distribution increasingly occurs through platforms
Platforms represent a noticeable channel for retail fund sales
PLATFORMS REMAIN THE DOMINANT CHANNEL FOR ADVISORS
Online interactions are important, with mobile connectivity less of a concern
The majority of IFAs rely on multiple platforms, especially those with larger businesses
PRODUCT PROVIDERS ARE REGULARLY REVIEWED
Product providers should offer a consistently appealing service as they undergo regular scrutiny from IFAs
Cost sensitivity is the major factor that prompts IFAs to review their platforms
IFAS ARE INCEASINGLY INTERESTED IN USING DFMS
Advisors are focused on moving away from traditional fund selection
Over a third of advisors are using DFMs for client investments