Surfing the wave

The 5th FE fundinfo Financial Adviser survey

This FE fundinfo survey was conducted throughout November and December 2019. It consisted of 46 questions and was completed by 271 financial advisers over this period.

It spanned a broad range of subjects including business drivers, revenues, new business and overheads for firms, the effects of MiFID II reporting and other regulatory changes, trends in investing, outsourcing, investment and retirement propositions and ESG investing.

Key points

• More than 54% of advisers are increasingly positive regarding their business outlook than they were a year ago. 
• 79% of advisers surveyed reported an increase in new client numbers in 2019
• Almost 85% of firms surveyed said that their operational costs had risen, with staffing, PI cover and reporting/regulation being cited as the most common drivers.
• The burden of regulation is the biggest cause of concern in the running of an adviser practice.
• When it comes to future FCA initiatives, advisers are most interested to see the regulator focus on addressing the advice gap and improving the financial education of consumers.
• There was a bigger rise in the number of firms operating a centralised retirement proposition (up 13% year-on-year).
• Outsourcing of investment management continues to increase with more than half of advisers in the survey using 3rd party model and managed portfolios in some capacity
• 55% of advisers said the amount invested into ESG investments had increased last year and the biggest asset allocation changes were in favour of ESG funds.