Opportunities
Three-quarters of advisers see growth in the retirement market as a main area of opportunity, with half viewing an increasing need for regular financial reviews as key.
In contrast, growth in protection was cited by 18% of advisers as an opportunity this year, compared with 28% last year.
Attracting orphaned customers was also mentioned by fewer advisers, down to 19% from 24% in 2016.
Orton said: “What is striking in this year’s survey is the polarisation of opportunities within the market. A large majority of advisers now consider retirement planning to be the best opportunity they have, but it is noticeable as well that advisers said frequent financial reviews are now more important than ever, with the low-interest rate environment driving a need for regular reviews to ensure clients are making the most of their investments.”
Platforms
The number of advisers considering changing their main platform is slightly up from last year, with 14% saying they are considering this. However, this level has barely changed since September 2013.
Functionality remains the main reason for advisers considering change, but this seems to be less important than previously, with 59% of advisers citing functionality as the main reason to change compared with 72% a year ago.
Value for money and cost are both cited by half of advisers as a key reason, emphasising the importance of balancing these two related factors.
Nearly all advisers (98%) conduct due diligence at least annually, with 4% saying they do it more often than that and 13% conducting due diligence with every new client.
Orton said: “It’s encouraging for us to know that due diligence is an integral part of BAU [business as usual] for advisers. In line with the survey findings we are seeing an increasing number of advisers concerned about the financial stability of their platform as part of their due diligence.”
