You are here

Financial advisers doubt future growth

More than half are pessimistic about the next three years, research shows

17 October 2013

Add comment

Eight per cent of financial advisers believe they will stop trading in the next three years while a further 45 per cent will see their business contract or remain flat as they struggle to adapt to the Retail Distribution Review (RDR) order, according to research conducted by Foster Denovo.

Only 47 per cent of advisers questioned anticipate growth, while 43 per cent indicated that it will be difficult to maintain profitability, and the same number stated that it will be a challenge to generate more revenue per client.

More than one third (38 per cent) said discussing fees with clients had proved difficult. Some 47 per cent of advisers also feel it will be difficult to spend chargeable time in front of clients.

However, 37 per cent agreed that RDR had been positive, with only 18 per cent stating the opposite. Some 36 per cent have seen profits increase post-RDR, although 23 per cent said that profits have remained flat or decreased.

Roger Brosch, CEO at Foster Denovo, said: "The sector has come a long way, but there is still some way to go. It is positive to see that more than a third of advisers have seen profit increases post-RDR, but it seems that it will be the most adaptable that survive and prosper in this new world."

The biggest daily frustrations for financial advisers were compliance procedures (51 per cent), technical support (42 per cent) and having enough client-facing time (38 per cent).

The national advisory firm surveyed 100 UK financial advisers between July and August.

Just under half (42 per cent) were from London and the south-east.

 

Categorised in:

Tax & Wealth structuring