Three out of 10 advisers earn more than £1m

Three out of 10 advisers earn more than £1m

Almost half of the UK's advice firms are planning to recruit in 2017, despite rocketing concerns over economic uncertainty brought on by Brexit and President Trump, a survey by Aviva has revealed.

The survey of more than 600 financial advisers found that 45 per cent were planning to recruit in the next year, up from 40 per cent a year ago, and 31 per cent in March 2013. 

It was the greatest amount looking to hire additional staff since the survey was first conducted.

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That was despite more than twice as many advisers as last year listing economic uncertainty as a key concern.

Brexit was the major cause for concern, with the vast majority of advisers (78 per cent) reporting concern over market volatility in the lead up to the UK's withdrawal from the European Union.

This gloom, however, did not make its way to advisers' balance sheets. 

More than 30 per cent of advisers reported their firms’ income was more than £1m, compared with 26 per cent at the same time last year.

Nor did it translate to much of an increase in demand for advice, with 84 per cent of advisers reporting no additional demand attributable to the Brexit vote.

For those who had seen an increase in demand, 77 per cent had came from clients looking for assurance.

Thirty per cent were looking to turn cash into investments, while 27 per cent were looking to do the reverse.

After market volatility, advisers' mains concerns over Brexit were regarding changes to regulation.

Brexit also induced almost no advisers to switch providers, with only 2 per cent of advisers reviewing their providers following the vote.

Tim Orton, chief executive of Aviva Adviser Platform, said: “The most concerning factors for advisers in the next six months are the ramifications from Brexit and Trump’s presidency, but factors which advisers can control, such as remaining profitable, have become less of a concern for them.

"I think this is also a reflection of the way the market has grown and strengthened since our survey began back in December 2011.

"What is coming through strongly is advisers saying they are putting measures in place to make sure they are in as good a place as possible to meet whatever challenges occur in the coming year – by sticking with financially strong, secure, diversified UK-based companies."