More than half of financial advisers have seen their business impacted by poor service from platforms, according to new research from Parmenion.
Parmenion’s report ‘The Impact of Poor Platform Service’ reveals 54% of advisers say poor platform service has a significant impact on their business. However, this is down from 80% in last year’s report, suggesting platforms are working to improve the service they offer.
The vast majority of advisers still say they have had to apologise to clients in the past 12 months because of poor service from platforms, but at 90% this is an improvement from last year’s 95%.
Some 40% of advisers say they have changed platform because of service standards, and the average adviser says they lose four hours a week dealing with platform issues. Again, there is a small but welcome improvement here as this figure has fallen from 5.3 hours in 2024’s report.
Transfers are still a point of contention, with the vast majority of advisers saying they would like to see more transparency around transfers in and out. Platforms should publish data on this across all products they administer, respondents say.
Key findings from the report are:
- 90% of advisers have had to apologise to clients for poor platform service in the last 12 months (down from 95% in 2024).
- 40% of advisers say they have changed platform because of poor service.
- 90% of advisers say providers should publish their electronic transfer connectivity for both transfers in and out.
- Advice firms still lose on average nearly a day a week due to poor service (estimated productivity loss 17%, down from 21% in 2024).
‘The Impact of Poor Platform Service’ was produced in conjunction with the lang cat and is based on qualitative and quantitative research with 190 members of the lang cat’s adviser panel. The current report is wave three of a research project which began in autumn 2023.
Parmenion’s CEO Martin Jennings said:
“In contrast to a rather dismal 2024 report, this year’s research shows platforms are taking steps in the right direction. Advisers have told us that service standards are rising, although there is further to go. There are still many pain points for advisers and dealing with frictions caused by platforms is costing advisers valuable hours each week which should be spent serving their clients.
“Transfers in particular are a source of problems for many advisers and a clear example of where our industry is falling short when it comes to client service. We hope to see greater transparency and accountability moving into 2026 so that next year’s report highlights great strides rather than small steps.”
Parmenion Chief Customer Officer Sarah Lyons added:
“We’re incredibly grateful to the members of the lang cat’s adviser panel who generously shared their time and their views to give us real, valuable insight into how platforms are really working for advisers in the UK today. Research like this is so important to shape how we as an industry do business, and the value and outcomes we are able to deliver for end clients.”
The lang cat’s Insight Director, Steve Nelson said:
“Quite rightly, service is a top priority for financial advisers, being the main factor that determines satisfaction, and also drives platform selection decisions. Although there has been a slight improvement since last year’s research, still 90% of advisers report having to apologise to clients for platform failings, which is surely unacceptable.
“One of the key themes that came out in the research was advisers wanting to see accountability from platforms when things go wrong. We hope to see more platforms listening and taking ownership of mistakes rather than passing the buck.”
Download the full report ‘The Impact of Poor Platform Service’ here: https://parmenion.co.uk/the-impact-of-poor-platform-service/
