1/2 of adviser businesses claim they won’t grow

Exclusive Research, commissioned by Foster Denovo, highlights that 8% expect to cease trading, and a further 45% will see their business either contract or remain flat, following the Retail Distribution Review.

Almost 1/2 (47%) of 100 advisers polled by national group Foster Denovo said they expected their firms to grow between now and 2016, while 45% expected business to either contract or remain flat over the period.

Foster Denovo said it was concerned that eight respondents believed they would cease trading in the next three years, a figure which, extrapolated across the entire UK advice market, would mean some 1,700 advisers exiting the industry.

Darren Laverty, sales and marketing director at Foster Denovo, said: “It is concerning to see that such a large segment of our industry predicts their business will fail to grow over the next three years. Equally, the 8% figure would equate to circa 1,700 advisers in today’s market, taking us to below 20,000 financial advisers.”

More than one third (38%) of those questioned said discussing fees with clients had proven a challenge, while 47% said they felt it will be difficult to spend chargeable time in front of clients.

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