Outflows from advised platforms rose for the eighth quarter, latest data shows, a 30 per cent increase compared to a year ago.
Advisers have put this down to clients paying off mortgages and other debts as well as increased competition in a high interest environment.
The latest platform data from the Lang Cat showed in the second quarter of 2024 there were outflows of £15.77bn.
This is a 2.56 per cent increase on the £15.38bn seen in the first quarter and a 30.35 per cent increase on the £12.10bn seen in the second quarter of 2023.
Despite this, gross sales in the quarter remained elevated for the second quarter, at £18.65bn.
These are some of the highest quarterly sales since record-breaking numbers in 2021.
Rich Mayor, senior analyst at the Lang Cat, said recent research carried out by the consultancy found this was mostly down to transfer business written by advisers.
He added: “Some advisers are quite active in this space, and a surprising amount have told us they’ve chosen a new primary or secondary platform in the last year.”
Quilter saw the most gross sales in the quarter with £2.91bn, bringing its total advised assets under administration to £80.04bn.
Mayor added: “But aside from the strong gross sales numbers it’s not all good, with outflows from advised platforms rising for the eighth quarter in a row.
“Advisers are still telling us it’s for the same main reasons: paying off mortgages and other debt, helping family members, and increased competition from products that are better in a high-interest rate environment like cash and annuities.”
Mayor questioned whether peak outflows have yet been reached.
He added: “A rate cut, and reduced inflation should pave the way for reduced outflows and improved net sales in future, particularly if interest rates continue to come down.”
tara.o'connor@ft.com
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