Time spent on regulatory and portfolio administration tasks is limiting advisers’ ability to focus on clients, says Rathbones Group.
According to new research from the wealth manager, more than three quarters (77%) of advisers say compliance requirements limit time for financial planning, while 69% say portfolio management tasks take priority.
Nearly half (49%) cite lack of administrative support as a key constraint.
Increasing regulatory demands is also affecting advisers’ ability to manage portfolios effectively, with almost all (98%) agreeing that compliance and documentation requirements already delay timely portfolio management. Looking ahead, nine in 10 (91%) expect this burden to increase over the next three years.
Rathbones said this pressure comes as two thirds (66%) of advisers believe that offering holistic, forward-looking financial planning is what truly sets their service apart in today’s market, particularly against a backdrop of tax, pension and inheritance tax changes.
Andrea Yung, investment director at Rathbones, said: “Advisers are under growing pressure from both regulatory requirements and time constraints. Many are spending more time on portfolio management than on the strategic planning that advisers say truly adds value for clients.
“With 43% of advisers stating that their clients will place increased value on both financial planning and portfolio management over the next three to five years, the ability to offer the best of both worlds – tailored advice and high-quality investment solutions – is becoming essential.”
The study comes as Rathbones prepares to launch its enhanced actively managed model portfolio service, designed to streamline portfolio management and meet regulatory requirements more efficiently.
Rathbones said saving time remains the top priority (60%) for advisers when building portfolios, followed by the ability to manage risk.
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