Nearly two thirds of advisers feel ready for Consumer Duty but platforms should continue to lend support, says research firm Investment Trends.
According to its latest 2023 UK Adviser Technology and Business Report, 64% of advisers say they feel very confident or confident in meeting the guidelines set out by the Financial Conduct Authority. However, there is still demand for product providers to support advisers with improved client facing documentation, the report found.
Over half (53%) of advisers are open to paying extra for ongoing support from their main platform, while 18% want additional support specific to regulatory change.
Lorenzo Vignati, associate research director at Investment Trends, said: “Despite advisers showing higher self-assessed confidence levels, product providers are vital in supporting advisers through this transition in regulation.”
Additionally, the research showed that active client numbers have jumped as advisers increase their level of reassurance amid challenging market conditions. The average number of clients no longer active fell from 17 in 2022 to 6 in 2023. However, net year-on-year change in profitability for advice firms has dropped, after a sharp recovery last year. More than half (53%) reported being more profitable in 2022, compared to 30% in 2023.
Investment Trends said that the proportion of new client money advisers placed through platforms has also declined after all-time highs in the previous year (77% from 82%). Advisers, however, expect this to increase in the next three years to 80%. The top barriers to placing more inflows on platforms is the unavailability of certain products and platform fees (39%), a lack of desirable tax wrappers (31%) and cash accounts (30%).
