The vast majority (86%) of adviser firms believe the profession needs to do more to appeal to younger clients, yet fewer than half are currently working with this demographic, according to Nucleus.
Nucleus’ newly-launched survey ‘Nucleus Voice of the Adviser survey’, explores issues affecting advisers, including the biggest challenges the industry faces, as well as the changes shaping the community.
It found that nearly two-thirds of advisers rely on referrals as a key source of new business, with only one in 10 using social media to connect with potential clients.
However, advisers recognised the impact of social media on clients, with 59% stating they’ve seen clients negatively affected after following poor or unregulated financial tips online. Less than a third (28%) of advisers agree ‘finfluencers’ have a positive role to play in providing access to financial advice and guidance.
Meanwhile, Nucleus said that one of the biggest challenges for advisers is the changing regulatory landscape, with 75% admitting that staying on top of changing requirements is a challenge.
Firms said changes in government policy were currently the biggest challenge to their firms, with changes to regulation coming third.
Paul Bagley, distribution director at Nucleus, said: “The voice of advisers is clear: change is not coming – it’s already here. The question is no longer whether the profession will transform, but how it will transform in a way that serves both advisers and the clients who desperately need their help and support.
“Our survey results highlight that while regulatory demands and digital disruption continue to reshape the landscape, advisers remain committed to delivering trusted, personal advice in a changing world.”
Andrew Tully, technical services director at Nucleus, said: “The FCA’s proposed targeted support regime is a positive step towards closing the planning and advice gap by making regulated guidance more accessible, especially for those dealing with pensions and investment decisions.
“It offers advisers a valuable opportunity to engage with underserved groups, demonstrate to people that advice may be an option to consider at the appropriate time, and promote greater financial inclusion. It’s crucial the Government and regulators continue to do more to highlight the benefits of taking regulated financial advice.”
Looking at the ability of firms to attract the next generation of advisers, Nucleus said mergers and acquisitions remain a talking point in the profession. Seven in 10 (71%) believe it’s getting harder for smaller, independent firms to survive, however 83% of firms overall say they are doing a good job attracting and developing talent in house.
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