Winners in lockdown: some firms see new business jump 30%

Winners in lockdown: some firms see new business jump 30%

Some advice firms saw new business jump by up to a third during the coronavirus pandemic, defying predictions the crisis could see a large scale exodus from the industry.

In a survey of 83 advice firms by Dynamic Planner, a fifth of advisers said new business was now "higher or much higher" amid the crisis - with some reporting growth of more than 30 per cent. 

According to the data, a third said new business was about the same and 16 per cent said it had dropped by more than 70 per cent. 

The figures support data collected by the Financial Conduct Authority in June, which found a mere 14 advice firms believed the economic fallout of the coronavirus pandemic threatened the survival of their business.

The picture painted by the research appears to defy predictions the coronavirus crisis could trigger a greater exodus from the profession than seen in the wake of the Retail Distribution Review. 

Yasmina Siadatan, marketing director Dynamic Planner, said: "The Covid-19 pandemic has impacted the financial advice and planning industry in a uniquely challenging way, and it’s not over yet.

"The country is already in deep recession and is bracing itself for one of the most troubling economic periods in a century.

"The restrictions brought about by managing the virus are a huge challenge for a traditionally face-to-face industry."

But Ms Siadatan warned the issue of new business levels remained for most firms, with Dynamic Planner sharing ten lessons from those advice firms which generated more than 30 per cent more new business during the pandemic. 

Ms Siadatan added: "We hope that by sharing this analysis of what those who have been most successful are doing, we can go some way in helping advisers learn from one another, make an even bigger difference for clients and come through the pandemic stronger and better than before."

Source: Dynamic Planner

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