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Five biggest platforms’ market share falls 20%

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Skandia: Dropped to second of the top five platforms in 2013 by market share

The market share of the biggest five UK adviser platforms has decreased by 20 per cent in the last three years, falling from a 90 per cent in 2010 to 70 per cent in Q1 this year.

Research from The Platforum shows the dominance of larger adviser platforms has decreased significantly.

The figures show the single largest market share held by a platform has fallen 14 per cent from Skandia’s 35 per cent share in 2010 to Cofunds’ 21 per cent share this year.

The top five platforms by market share in 2013 are Cofunds, Skandia, FundsNetwork, Standard Life and James Hay.

In 2010, the top five was made up of Skandia, Cofunds, FundsNetwork, Transact and Standard Life.

Standard was the only platform in the top five to increase its market share, seeing an increase to 6.6 per cent from 4.3 per cent in 2010.

According to The Platforum’s research partner Matrix Solutions, £10.6bn was written on platforms in the first quarter of 2013, making up 60 per cent of total new business. 

The Platforum managing director Holly Mackay says: “This change has been caused by new entrants coming to market, by proportionately stronger net sales amongst the newer platforms and by ongoing adviser support and adoption of the 30 platforms active in the adviser space today. We think the removal of trail commission on platforms from 2016 will see substantial shifts of assets over the coming two years.”

Capital Asset Management chief executive Alan Smith says: “In a consolidated market such as this it is to be expected that the top five or six players will have a significant market share. I would not be surprised to see that 70 per cent market share increase over the next one or two years.”

Q1 2013 AUA (bn) Market share
Cofunds £52.28 21.4%
Skandia £44.88 18.4%
FundsNetwork £43.59 17.9%
Standard Life £16.20 6.6%
James Hay £14.50 5.9%
Q1 2010 AUA (bn) Market share
Skandia £35.00 34.5%
Cofunds £25.20 24.8%
FundsNetwork £18.30 18.0%
Transact £8.50 8.4%
Standard Life £4.40 4.3%

 

 

 

 

 

 

 

 

 

Major platforms by size and date of launch

Platforum

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