However, he said those advised clients who are placed into externally managed funds are charged a fee structure that is not linked to market movements, so the impact on his business has been minimal.
Paul Stocks, an adviser at Dobson and Hodge, an advice company in Doncaster says the impact on his business has not been significant.
He says: “While some of our revenue is fee-based, rather than as a percentage of assets, more of it is percentage of assets.
“And while that recurring revenue may have fallen in March, it will have been higher than expected in December, January and February, when markets were up a lot, so generally we find that these things smooth out over time.”
In terms of the reaction clients have had to seeing their portfolios fall in value, Mr Stocks says: “We have always told clients that events such as what happened in March are part of what we plan for, and they recognise that.
“We don’t do much new business; we do a lot of business that is existing clients wanting to add to their portfolios, and those clients have not reacted to the market fall.
“We had done most of the Isa business for clients by March, but the couple of clients we had who came to top up their Isas after the market falls didn’t blink.
“There was also a client who we had given the original advice to in February, and he invested the money after the market fell.”
Review cash adequacy
Matt Timmins, joint chief executive of support services business SimplyBiz, says there are steps advisers can take regarding their cash position.
“Review your existing cash monitoring and reporting systems and consider their adequacy for the current scenario.
“In these circumstances, cash flow models need to be updated on a daily basis, such that timely action can be taken to ensure the preservation of cash headroom.
“Understand the absolute level of cash headroom that you have available on all bank and credit facilities, and consider drawing down any unused elements of those facilities to give yourself the maximum levels of flexibility and security of cash in your bank.”
He adds that advisers should: “Understand the working capital cycles of your business on a daily, weekly and monthly basis.
“Review the timing of payments for suppliers and consider if or how these could be delayed.
“It is always better to work with your key suppliers proactively, rather than avoid paying them, particularly if they are critical to your business and can easily switch off their service or refuse to deliver.