Advisers are calling for a more relaxed regulatory environment to enable them to grow organically, new research from NextWealth and Aegon has found.
A new report, titled ‘Organic Growth for Financial Advice Firms’, found over three quarters of advisers want to grow their assets under advice, however, only a tenth have a clearly defined strategy to do so.
Nearly half of advisers said they were already working with more clients than at the same time last year, yet NextWealth and Aegon said a large group of potential clients remain unserved, with only 14% of people in the UK with more than £100,000 in investable assets currently receiving financial advice.
Advisers believe that a more relaxed regulatory framework for people with simpler needs would have the biggest impact on enabling them to attract new clients in the next 18 months (48%), followed by an easier process for onboarding clients (35%).
A third (33%) also cited more efficient ways to serve lower-value clients profitability.
Stephen Crosbie, managing director – adviser platform at Aegon UK, said: “By strategically focussing on organic growth, firms can sustainably extend their services to more clients, which not only benefits them, but would also generate a positive ripple effect across the economy.”
Crosbie said advancements in technology, coupled with a favourable regulatory environment, can help advisers to optimise their operations and processes to reduce friction and enhance client experiences.
“By supporting more individuals to make informed investment decisions, we harness the potential to drive substantial positive outcomes for everyone involved. But this research shows that we need to support our advice community and call for the regulators to implement a more relaxed framework for clients with simpler needs.
“We’ve come a long way with the imminent outcomes for Targeted Support expected later this year. But it’s crucial that the regulators act to provide the necessary backing to enable a more supportive regulatory environment. Together, we can ensure that more people are helped to achieve their financial goals through informed decision-making, backed by a flexible and inclusive regulatory framework.”
Heather Hopkins, managing director of NextWealth, added: “Our research highlights successful strategies employed by firms, such as deepening client relationships, reconnecting with previously overlooked clients, and developing innovative propositions.
“For financial planners looking to grow, adopting these strategies and innovating in service delivery can unlock organic growth potential. With the right regulatory and support frameworks, we can collectively ensure that more individuals achieve their financial goals, which will benefit their firm, the industry, and the broader economy.”
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