IFA business through platforms fell by 15 per cent to £2.6 billion (about $4.2 billion) in the last three months of 2011, down from £3 billion in the previous quarter, new research shows.

The research by MyTouchstone, the IFA database, also shows that other IFA business only declined by 3 per cent, from £10 billion to £9.7 billion, in the three months to 31 December.

In absolute terms, the number of IFAs who did all of their business without a platform increased to 6,677 in the fourth quarter from 6,479 in the previous quarter. Those who did all their business through a platform increased as well but only by 26 to 462.

The findings contradict the repeated message that advisory business on platforms will continue to increase in the run-up to the Retail Distribution Review, which come into force at the start of next year.

MyTouchstone, which is part of the wealth and investment intelligence services division of Equifax, still believes that platforms “play [a] vital role in IFA fortunes ahead of the RDR”, and it released the research at the same time as it launched a more detailed section for platforms on its website.

Another recent survey into the potential effects of the UK regulator’s reforms showed that nine out of ten financial advisors intend to retain their independent IFA status next year. On the other hand, 70 per cent of larger nationals and networks intend to opt for restricted advice propositions.