No Major Shift in Adviser Platform Priorities Despite Consumer Duty
With the first quarter of 2025 in the rear-view mirror at Defaqto we have been reflecting on what criteria advisers using Defaqto Engage have been filtering on whilst doing their research for their clients and ensuring they have the best adviser platform and experience.
It also guides us at Defaqto to ensure we have the correct data for advisers to use for their research and due diligence as trends change, although over the past year even with the impact of consumer duty advisers are still filtering on the same top 20 areas with only minor changes to the filter position in the top 20.
So what does that tell us about the importance of selecting an adviser platform? That advisers are recommending platforms that allow true flexibility that align with client goals, investment strategies and service expectations.
In today's digital landscape, the process of selecting financial products has evolved to mirror the intuitive experiences found on platforms like Amazon. Just as consumers are guided by personalised recommendations and filters when shopping online, UK financial advisers are leveraging sophisticated tools to streamline their due diligence processes. Defaqto Engage stands out as a premier solution, offering a comprehensive system that enhances the financial planning journey from inception to completion.
The Significance of Due Diligence in Financial Advising
Due diligence is the cornerstone of effective financial advising. It ensures that advisers meticulously assess and select platforms and products that align with their clients' objectives and risk profiles. With the introduction of the Consumer Duty regulations, a staggering 85% of financial advisers have reported the necessity for more rigorous record-keeping and intensified client interactions. This heightened regulatory environment underscores the imperative for advisers to utilise robust research tools to maintain compliance and deliver optimal client outcomes. As the FCA say consumer duty is not a once and done exercise it’s an ongoing and important part of how advisers run their businesses and advise clients and platform selection is an important part of the journey.
Top 20 Adviser Platform Filters in Defaqto Engage for quarter one 2025
Of the 228 available platform filters, the most frequently selected remain:
- AKG Platform Financial Strength
- ISA Availability
- Online Client Valuations
- Personal Pension Plan or SIPP Availability
- Online Illustrations
- General Investment Account
- Product Availability through Advisers
- Online Transaction History
- Flexi Access Drawdown (FAD)
- Platform Access for Advisers
- ISA Transfer Capability
- Platform Access for Clients
- Unit Trusts/OEICs Availability
- Online Contribution History Availability
- PROD Products Target Client Type
- Ongoing Adviser Charging
- Initial Adviser Charging Type
- Number of Funds Offered
- Consolidated Tax Voucher Provision
- Capital Gains Tax (CGT) Reporting
These filters enable advisers to tailor their platform searches to meet specific client needs, ensuring a personalised and effective advising experience.
Adoption of Filtering Tools Among UK Financial Advisers
The adoption of advanced filtering tools like Defaqto Engage is on the rise among UK financial advisers. As of recent reports, over 8,600 advisers are utilising Defaqto Engage to assist their clients in making informed financial decisions. This growing reliance on sophisticated research tools reflects the industry's commitment to enhancing due diligence processes and delivering superior client service.
In Conclusion
In an era where clients expect personalised and well-informed financial advice, the importance of thorough due diligence cannot be overstated. Tools like Defaqto Engage, with their comprehensive filtering capabilities, empower advisers to navigate the complex financial landscape effectively. By using these advanced platforms, advisers can ensure compliance, optimise client outcomes, and uphold the highest standards of financial planning.
Author: Darren Winfield, Defaqto Insight Manager