Many people will agree that 2019 has been one of the toughest years since the global financial crisis, second only perhaps to 2016.
And financial advisers are no different.
It was difficult for a number of reasons and advisers were split when asked by Old Mutual International to rank their top challenges:
- Regulation – 16%
- Global economic slowdown – 15%
- Attracting new clients – 14%
Nervous clients
The last couple of year heralded the arrival of a couple of big pieces of regulation; namely Mifid II and the Isle of Man’s Conduct of Business Code.
Also, in November 2019, the Organisation for Economic Cooperation and Development (OECD) released a report which said that the global economy is only set for continued growth of around 3%.
Just 8% of advisers flagged Brexit, however.
When advisers were asked what impact Brexit had had on their clients, 47% said none at all.
A further 31% said that the impact had been that more clients are choosing to invest their assets offshore.
One adviser commented: “Clients are simply a lot more nervous about investment decisions.”
A view echoed by many.
Conversely, respondents believed that retaining advisers or staff in the industry was not a challenge over 2019 with just 1% voting for this as their biggest challenge.
Proved resilience
Old Mutual International chief executive Peter Kenny commented: “With two huge pieces of regulation coming in the last couple of years in the form of Mifid II and Isle of Man’s new Conduct of Business Code, it’s no wonder that advisers selected regulatory change as their biggest challenge this year.
“Shifts in regulation can be hard to keep track of and time consuming, particularly when running a hectic business; yet advisers have proved their resilience and adapted remarkably well despite the challenges.
“However, the survey results show that a myriad of challenges are playing on the minds of international advisers this year and while regulation tops the list, a perceived slowdown in the global economy and attracting new clients represent difficulties too.
“Keeping pace with regulatory change is no mean feat but it’s essential that financial advisers evolve or risk falling behind.”
OMI surveyed 180 advisers from across the UK, Europe, Middle East and Asia in November 2019.
