New research from Vanguard has revealed the strength of support for simplified advice among advisers.
Almost six in 10 (59%) say they are likely to adapt their processes to offer simplified advice to some clients.
Vanguard surveyed 200 advisers across the UK as part of its ‘Powering your adviser business towards 2030’ roadshow, exploring advisers’ strategic priorities and operational challenges as they prepare for the year ahead.
The investment manager said advisers highlighted the potential use of simplified advice as a means of introducing younger clients to financial planning as well as developing less experienced advisers and supporting families through intergenerational wealth transfer.
Advisers also pointed to the increased urgency of inheritance planning discussions ahead of changes to the IHT pension rules set to come into force next April. Many expected this to accelerate the transfer of wealth to beneficiaries, increasing the importance of engaging family members earlier and helping them navigate their first investment decisions.
Gillian Hepburn, head of UK adviser solutions and sales at Vanguard, said: “What surprised us was the strength of support for simplified advice. We expected advisers to be interested, but the level of openness was higher than anticipated.
“A clear catalyst has been the growing focus on wealth transfer following changes to the inheritance tax treatment of pensions. As more clients consider passing assets to family members, advisers are increasingly focused on how to engage beneficiaries who may inherit wealth sooner than expected and need support as they begin investing. Simplified advice could play an important role in that.”
However, Vanguard said appetite for simplified advice was lower among firms focused on succession or preparing their business for sale. Many in this cohort reported having sufficient demand from existing clients and saw less need to develop new propositions aimed at different client segments.
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