One in 20 advisers polled by the Association of Professional Financial Advisers plan to hand their business to a family member when they retire.
The survey of 235 financial advisers in October, carried out for Apfa by NMG Consulting, showed that just 51 per cent of financial advisers would recommend that a family member took up financial advice as a career.
Chris Hannant, director general of Apfa, said: “Whether you look at this from a glass half full or glass half empty perspective, the fact is for every adviser who would recommend financial advice as a career there is one who wouldn’t.
“There are some common factors likely to be behind this. Members tell us regularly that the burden of bureaucracy and costly regulation are real issues. Ultimately, they may be tainting what is a vitally important profession. This needs addressing.”
Apfa’s research also found that a quarter (26 per cent) of the financial advisers surveyed plan to sell their business when they retire, and a further quarter (26 per cent) have no succession plans at all.
Mr Hannant said: “The financial advice industry has arguably never had a more important role to play in helping people make good financial decisions. The legacy of today’s firms should be a vibrant and healthy profession tomorrow.
“This means ensuring all firms have succession plans in place when the time is right, but it’s also about the regulator doing more to reduce the burden on advisers and ultimately making the profession a more attractive career option.”