One in five advisers plan to exit the industry in the next three years despite optimism in the profession being high, according to SimplyBiz.
In a survey of 300 members, the firm found that 76% were feeling optimistic about the future while just 3% had negative feelings about what lies ahead for their business in the post-pandemic world.
However, 19% of the 300 respondents still said they planned to leave the industry within the next three years.
The top three challenges cited by advisers in the current market were professional indemnity insurance (PII) fees, the administrative burden and regulatory pressures.
Meanwhile significant opportunities were also identified for advisers in the next twelve months, with the top three being engaging new clients, utilising developing technology and intergenerational advice.
More vulnerable clients
Unsurprisingly, the pandemic has produced some substantial impacts on the industry and advisers’ businesses which look to have been embraced for the long-term.
The move to remote or other alterative advice options has clearly been a success during the last 18 months and 93% of advisers said they would continue to offer digital engagement options alongside face-to-face meetings.
And the majority of advisers (58%) said they had increased the size of their client-bank since the start of the pandemic, with just 5% reporting a decrease in size.
However, the majority (55%) of respondents believe their clients will be more vulnerable than they were before the Covid-19 pandemic.
The hybrid approach to working continued into the events space with 74% of advisers wanting to retain the choice to attend events either face-to-face or virtually, and 55% saying they would also like the option of physical and virtual compliance visits.
SimplyBiz marketing director Richard Ardron acknowledged the past sixteen months had been tough but the survey demonstrated resilience and ability to adapt.
“Overall, the results revealed both that advisers were generally optimistic about the future, and that they have reason to be,” he said.
“With client banks growing, understanding of the importance of advice increasing and more channels of communication between clients and advisers now available, the future looks very positive for our sector.”
