Demand pushes legal firms to exceed advice capability

The study from Bower Private Clients found that 36% of accountants and 38% of law firms had experienced an increase in demand for advice about personal finance from clients in the past 12 months, with help on inheritance planning one of the major sources of inquiries.

78% of law firms routinely referred clients seeking financial advice to a financial adviser.

However the growth in demand is causing concern - nearly a third (31%) of accountants and 20% of law firms say they are worried that some of the advice they are giving goes beyond their core expertise.

6% of accountants admitted to providing detailed financial advice themselves.

72% of accountants say inheritance advice is a major area while a growing client base (59%) and an increase in property transactions among clients (31%) were other major reasons. A third (33%) of accountants received enquiries on accessing property wealth and equity release from clients.

Law firms found property transactions the main reason for the growing demand for advice, with inheritance planning coming a close second.

Andrea Rozario, Chief Corporate Officer at Bower Private Clients, said:

“It’s no wonder that accountants are seeing clients increasingly enquiring about financial planning given the recent changes in pensions, high property prices and the complex nature of estate planning. The wealth tied up in homes is a potential source of retirement funding but people need to be properly advised.

“Given more demand for advice in what is an increasingly complex market, it is very important for accountants to have access to trusted partners. Advisers recognise that property wealth can offer a variety of solutions for their clients.”