Referrals from accountants and lawyers will become a bigger source of new business for advisers over the next 12 months, according to research by Prudential.
For two out of five advisers referrals currently come from existing clients –making it the biggest source of attracting new customer.
But 52 per cent of advisers believe the number of referrals they receive from other professionals will rise in the year ahead - boosting new business levels.
This comes as 15 per cent of advisers say accountant and lawyer referrals are their biggest source of new business – slightly up from 11 per cent in a similar study last year.
John Gaskell, head of personal financial planning at the Institute of Chartered Accountants in England and Wales, said: “It’s encouraging to see that advisers expect professional connections to become a greater source of new clients.
"In an increasingly complex financial planning environment, there is undoubtedly a greater opportunity for accountants and advisers to work more closely together to deliver better outcomes for their clients."
Part of the reason for this expected growth in referrals may be an increasing willingness by advisers to outsource specialised and complex advice.
A massive 47 per cent of advisers said they outsource to specialists while another 25 per cent indicated a willingness to outsource in the future.
Another reason may be the growing need for advice on protection from inheritance tax bills with around 58 per cent of advisers saying that they have seen a rise in inheritance tax advice enquiries in the past year.
In fact IHT planning was identified by 37 per cent of advisers as the second most significant source of opportunities to provide advice over the next three years, just behind the 40 per cent who said advice on taxation of retirement income.
Other sources for attracting new clients to advisers include their website, with 11 per cent of advisers saying this is their best source of new clients, while nearly one in 10 say their direct marketing including social media generates the most leads.
Paul Harrison, head of Prudential’s business consultancy for advisers, said: “Working with other professionals, particularly accountants and lawyers, is growing in importance when it comes to new client referrals and is likely to continue to expand in the future.
“Outsourcing to specialists and working in partnership with other professionals with expertise in complex areas is becoming a significant part of the advice market but does require clarity as to the roles and responsibilities of all involved.”
Kusal Ariyawansa, a chartered financial planner at Manchester-based Appleton Gerrard, said: “Many advisers have a consistent source of referrals from accountants and solicitors.
"Yes, existing clients tend to be the main source of new introductions, however, the internet now plays a major role in generating ongoing enquiries.”
