Platform providers should not take financial adviser's loyalty for granted, as new research shows that planners are exercising choice when it comes to platforms.
The number of advisers using a platform due to the dealer group's preferences has fallen from 36% last year to 29% in 2014, according to the latest Investment Trends May 2014 Planner Technology report.
At the same time, planners saying they are choosing platforms from any provider they wish has increased from 28% in 2013 to 35% this year.
Similarly to last year, adviser satisfaction with platforms is at an all-time high. However, 18% of planners who play some role in platform selection intend to look for a new or additional platform in the next year.
The Macquarie Wrap, the BT Wrap and the Asgard eWRAP seemed the most attractive options among advisers who wanted to switch.
"Following FoFA, and perhaps as a consequence of the introduction of the best interest duty, they now have increasing freedom," Investment Trends senior analyst Recep Peker said.
"With a quarter of planners saying they stopped investing new client flows via at least one platform, it's evident that planners have used this increased freedom to change the mix of platforms they use, focusing even more on the platforms that best address their needs."
Results showed that Westpac was the largest platform provider by primary planner relationships, with the proportion using a Westpac platform the most for new inflows remaining steady at 25% as of May 2014.
Commonwealth Bank followed closely, with 19% of primary relationships.
On an individual platform level, BT Wrap and CFS FirstChoice are still the most-used platforms, followed by North and Asgard Infinity eWRAP, both of which continue to grow their share of primary relationships.
netwealth has the highest satisfaction amongst its users, while MLC MasterKey registered the largest rise in satisfaction
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