Adviser numbers to drop despite increasing demand

The research from Prudential found that three in five advisers (60%) have, for various reasons, turned away a potential client in the last month, with one in 10 (10%) having to reject six or more people.

Growing numbers of clients now come from the professional services sector, including accountants and solicitors. Just over one in ten (11%) say referrals from the professional services sector is the biggest contributor to their new business pipeline. Over the next 12 months, 40% of advisers expect these referrals to increase.

However the quality of the advisers’ service proposition is the biggest driver of business for advisers. Almost seven out of ten (68%) say current clients act as their most important source of new business.

Paul Harrison, Head of Prudential’s Business Consultancy for advisers, said:

“Analysis of advisers’ new business pipeline over the next 12 months reveals some interesting trends. What stands out is that the quality of the service and value added by advisers is increasingly a new business referral tool in itself.

“Although demand for advice has exceeded supply, the advice community has reacted strongly to increase capacity by streamlining and improving their service proposition.

“The past few years have been a period of sustained change for advisers so it is worth remembering and re-stating the real value of what advisers do for their customers.”