The lead-up to the RDR could be hindering the short-term growth of the platform market, according to platform consultancy group The Platforum.
Figures collated from its quarterly (plat)Form Guide, for the last quarter of 2010, show 77 per cent, £10.16bn, of new business was still being written off platform with 5,394 advisers not using platforms during that period.
The Platforum says this may be down to advisers placing funds in a commission-based environment for as long as possible until RDR is implemented.
It says £2.99bn of new business was put on platforms by IFAs in the fourth quarter of 2010, amounting to 23per cent of the IFA market, up from £2.76bn in the previous quarter.
The total amount of business placed on platforms was down from £10.27bn in Q3 to £10.16bn.
The Platforum managing director Holly Mackay (pictured) says: “We think that this muted uptake of platforms is to some degree inevitable until commission is finally banned under the RDR.”