Advised platform assets rose by 9.24% in the second quarter compared to the previous three months, the highest quarterly growth figure since Q2 2020.
There was a modest drop in flows, with gross sales down 2.72% compared to the record-breaking first quarter.
Net sales in the period fell 8.95% compared to the first three months, falling to £7.36bn.
Platform consultants Lang Cat said its analysis found that platform growth reflected the positive market movement in the second quarter after the conflict in Iran and the Middle East meant no growth in the first three months of the year.
The analysis showed that new business flows were down modestly to £25.88bn on a record-breaking first quarter of 2026, but still represented the second-best quarter for gross sales on record, helped by stronger ISA sales.
Outflows across the advised platform market remained flat on the previous quarter at £18.53bn after a sharp reduction in Q1 2026 following the peak of Budget-related withdrawals in Q4 2025.
With gross sales down and outflows flat, net sales are down 8.95% on the first quarter of 2026, but still comfortably above the numbers seen since the invasion of Ukraine back in 2022 and subsequent rise in inflation, interest rates and further geopolitical volatility.
Rich Mayor, senior analyst at the Lang Cat, said: “The numbers so far in 2026 reflect the first half of 2025. We had no growth in the first quarter due to turmoil around the introduction of tariffs in the US, good growth in the second as markets settled, and a reduction in outflows from the preceding Budget.
“Under the bonnet, the advised sector continues to have strong new business numbers, with this quarter the second-best on our books. This quarter in particular we’re seeing really good ISA sales and it feels logical that there’s some reinvestment from the spike in Budget pension withdrawals washing through as new tax year subscriptions become available.”
He said from a net sales perspective, pensions continued to command the lion’s share of flows, with the rest a fairly even split between ISAs, GIAs and Bonds.
He said that’s a more recent trend and a new shape of net sales for platforms that operate nearly entirely in the advised market in terms of AUM, as planning for IHT on unspent pensions sharpens on the horizon.
Mr Mayor added: “This means some fundamental changes to retirement planning for more clients and we’re seeing that play out meaningfully in platform flows now.”