Survey reveals the five-star platforms

8 July 2010 | By Natalie Holt

Novia, 7im, Axa Elevate, and Nucleus have all been awarded five-star ratings and each platform has been given a satisfaction score of over 80 per cent in a new benchmarking report from Defaqto.

It benchmarks services offered based on a satisfaction study among 211 advisers about platforms that have been operating in the UK market for over a year. Out of the 14 platforms that were ranked by advisers, only three had a satisfaction score of under 50 per cent. Cofunds scored 44 per cent, Fidelity Funds Network scored 38 per cent and the James Hay wrap, which was sold during the course of the study, scored 27 per cent.

The scores were compiled after advisers were asked to rank 37 criteria which they considered key to their platform usage in order of importance.

The criteria considered to be most important by platform users were reliability of systems, willingness of staff to resolve problems and staff competence.

Defaqto collated the satisfaction scores weighted according to importance and produced star ratings on the results.

Rather than serving as a list of the best and worst platforms, the five-star ratings represent platforms with high satisfaction scores, which offer a wider range of services. A one-star rating represents the lowest satisfaction scores.

Insight analyst for funds Fraser Donaldson likens the star ratings’ report to hotel ratings where five-star represents the top end of the scale but which come at a cost, potentially offering more services than might be necessary.

He says: “Broadly, all the platforms are offering a reasonable service. In some respects, it is a little bit unfair to do a rating now because they are all going through a bit of a process of change with the retail distribution review, so you may find with next year’s result a complete turn-round with the table turned upside down as platforms change their business models in line with regulation.”

IFG Group acquired James Hay for £38.9m in March. IFG Group UK chief executive Mark Bogard says the James Hay wrap lost its focus on IFAs. He says: “We want to put all that right and materially improve the levels of service.”

Cofunds sales and marketing director Alastair Conway says: “It is disappointing to be awarded this rating but we welcome all adviser feedback as it helps us to hone our service.”

Fidelity declined to comment on the issue.