Demand for financial advice leads to regulatory concerns
One in five lawyers concerned advice goes 'beyond their core expertise'
Nearly two out of five law firms have seen a rise in demand for personal financial advice from clients leading to worries about regulatory concerns, new research.
The research found that 38 per cent of firms have experienced an increase in requests for advice in the past 12 months, with one in three forecasting a rise in referrals to independent financial advisers.
Bower Private Clients's study found 78 per cent of firms routinely made referrals.
However, the research also revealed concerns among lawyers about current arrangements, with 20 per cent worried that some of their advice goes beyond their core expertise.
No lawyers admitted to providing detailed advice themselves.
In addition, more than two thirds of lawyers cited an increase in property transactions as the main reason for the growing advice demand.
Meanwhile, a greater awareness of the need for inheritance (IHT) planning (64 per cent) and a growing client base (50 per cent) were second and third respectively.
More than half of practitioners cited IHT planning as an area where clients were looking for more advice.
Advice on trusts (49 per cent); divorce (46 per cent); and income and capital gains tax mitigation (38 per cent) were also cited as the popular financial advice enquiries for lawyers.
Three in ten lawyers received enquiries on accessing property wealth and equity release from clients.
The high-net worth adviser is anticipating a surge in demand for specialist advice and bespoke solutions for retired homeowners who need to maximise their property assets.
Andrea Rozario, chief corporate officer at Bower Private Clients, said: 'Pension rule changes are driving business for law firms but high property prices and the complex nature of estate planning are also major sources of demand.
'The wealth tied up in homes is a potential source of retirement funding but people need to be properly advised.'