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AE will buoy adviser income stream: survey

A survey of 433 advisers carried out by market research agency GfK and PanaceaAdviser found that 23 per cent thought auto-enrolment would be a valuable income stream following the introduction of adviser charging on investments under the RDR regime.

A further 17 per cent believed workplace marketing would form an important part of their business.

Chris Dunston, chartered financial planner for Devon-based Artavia PFS, said: “Auto-enrolment is definitely on my radar, and I have considered a marketing effort to local businesses, but it’s all about timing.

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“Most staging dates for smaller businesses don't start until next year so it’s important that you take action at the correct time. I imagine by 2016, when the full 8 per cent contribution will be in effect, auto-enrolment will be very important for advisers.”

The survey revealed that 17 per cent of advisers said they intended to diversify to boost their income stream by handling the general insurance needs of wealthier clients, while 39 per cent said receiving referrals from solicitors and accountants were important to their business.

Some 53 per cent said they expected less interaction with product providers in the future, while 69 per cent said most of their client investments would be on platforms.

More than 60 per cent said they would concentrate on clients with between £50,000 and £100,000 of assets.