5 platforms dominate adviser sector

Just five major platforms dominate the adviser platform sector, according to research from consultancy lang cat.

The firms - abrdn, Quilter, Aegon, Transact and Fidelity - control over half the £583bn assets managed by the advised platform sector.

According to the lang cat’s annual State of the Platform Nation Guide, advised platform assets continue to be concentrated among a handful of brands. 

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The report found that while 18 of the 21 platforms submitting data saw double-digit growth in gross flows in 2021 versus 2020, smaller players made little headway.

The consultancy calculates that advised platform assets stood at £583bn of assets as at 31 December 2021. 

The top five firm control approximately 53% of the assets of the sector. The top nine organisations accounted for 81.6% of assets compared to the bottom nine with 18.4%.

Looking at new business flows, the bigger platforms were the main winners with seven of the nine largest platforms by AUA (Assets Under Advice or Administration) also appearing in the top half of the table for both net and gross flows.  

Langcat State of the Platform Nation Report - Key Platforms by size

Source: the lang cat

 

Steven Nelson, insight director at the lang cat, said: “Despite all the talk of disruption in recent years, a platform’s size in AUA terms continues to correlate strongly with its new business flows. Although some of the newer players, like Multrees and Hubwise, have seen phenomenal year on year growth, their lower starting point means that they have some way to go to catch up with the bigger boys and girls. 

“Much of the strength of these propositions is in their appeal to advisers and wealth managers who want to become the masters of their own destiny, by building a technology ‘stack’ that best fulfils their client proposition. 

“Our research shows that only a significant minority of firms have looked into this model thus far, but interest is growing. Although it’s not for everyone, there are advantages to the ‘adviser as platform’ model and it’s an area that we expect to see considerable sector discussion.”

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5 platforms dominate adviser sector