More than half of advisers are set to halt giving some of their existing clients advice in the next 12 months because of the low levels of profitability, a survey has shown.
Online investment platform Rplan said 56 per cent of advisers interviewed for its survey stated they were planning to stop servicing some clients within the next year because they were no longer commercially viable.
It added 13 per cent of advisers had already stopped offering services to more than 20 per cent of their clients for this very reason.
Not only that, but since the implementation of the RDR, a third of advisers had established or increased a minimum portfolio size for clients with one in four (26 per cent) saying clients now needed to have more than £30,000.
A total of 16 per cent of advisers state a minimum portfolio amount of £50,000.
137 professional financial advisers were interviewed by PollRight during September and October 2014 on behalf of Rplan.
Stuart Dyer, Rplan’s chief investment officer, said: “Investors are clearly finding it more difficult to secure financial advice and given that our findings reveal 56 per cent of advisers are planning to stop servicing some existing client accounts in the next 12 months, the advice gap is likely to become bigger.”
