IFAs In UK Outsourcing Investment Decisions
Friday, August 20, 2010

Adviser research by independent UK financial research company Defaqto has revealed that the majority of investment and pension business is placed through platforms.

Fraser Donaldson, Insight Analyst for Funds at Defaqto said: “Platforms are becoming the dominant vehicle for investment and pension business for advisers, so it is no surprise to see the high percentage of this business being placed through platforms in the last year.”

Defaqto’s survey of 126 advisers found that only 3% chose not to place investment and pension business through platforms. Almost one-quarter (24%) of the respondents placed 51% to 75% of their investment and pension business through platforms, and 38% of advisers questioned placed more than 76% of their business through platforms.

Donaldson added: “We expect the usage of platforms to increase steadily over the next two years as advisers consider how to implement Retail Distribution Review policy by the end of 2012.”

Meanwhile, research by unbiased.co.uk, the website for the UK independent financial advice industry, suggests that more investors are seeking advice relating to pensions and retirement planning in response to government announcements on annuitization and the raising of the default retirement age.

The study found that 38% of consumers sought retirement planning advice when using unbiased.co.uk’s ‘find an IFA’ service. Retirement planning continues to remain the number one advice driver when searching for an Independent Financial Adviser (IFA), with a 2% rise in searches month on month.

The number of consumers searching for an IFA specializing in investment and savings also rose slightly to 26%, and this topic remained the second most popular advice driver in July.