Platform users dwarfed by off-platform advisers

An analysis by IFA database MyTouchstone suggests that more IFAs were placing business off-platform than were using platforms towards the end of 2011.

The number of IFAs using platforms for placing their business increased from 436 in the third quarter to 462 in the fourth quarter of 2011. But the number of those placing business off-platform increased from 6,479 to 6,677 over the same period.

Geoff Greensmith, strategic director for MyTouchstone, says: “This new data suggests that there is still some way to go in IFAs seeing the powerful business benefits of platforms.

“We believe that platforms are going to play an even more important role in the post-RDR world as they will make life much easier for IFAs to help comply with the new regulation.”

He adds: “It’s vital therefore, that they investigate the options and work out the best platforms to use in the coming months and we look forward to seeing how the trends change in 2012.”

The amount of new business on platforms shrank from £3 billion to £2.6 billion while off-platform business also shrank, from £10 billion to £9.7 billion.