Almost a third of single adviser firms are looking to retire or sell up, a recent survey has found.
The third annual ‘spotlight report’ from Dynamic Planner found the consolidation trend of 2023 “looks set to continue apace”.
Firms with more than 50 advisers are likely to anticipate growth, with 65 per cent expecting to grow in the next five years, compared with 30 per cent of single-adviser firms which said they are looking to retire or sell up.
By age, more than 70 per cent of advisers aged 60 and over expect to retire or sell their business in the next five years, while more than half of over 50s are looking to scale back in some way.
The report, titled Resilient and Embracing Opportunity: The financial advice landscape in 2023, also found the number one “headache for 2023” was regulation.
Yasmina Siadatan, chief revenue officer at Dynamic Planner, said: “The financial advice industry has embraced technology and its ability to help firms meet regulatory requirements, whilst unlocking productivity gains and deepening client relationships.
“Advisers were faced with a significant test this year in the form of consumer duty – but despite the challenges, the mood is one of resilience and looking to the future.”
Of the 341advisers surveyed, 85 per cent said technology has improved their ability to serve clients, with almost 75 per cent finding it is also helping them to meet regulatory requirements.
Elsewhere the study found advice is in high demand, with half of firms seeing an increase in new client enquiries over the past three years.
While among firms requiring a minimum level of investable assets, the most common threshold is £100,000.
Siadatan added: “Firms are making significant productivity gains through the use of apps, tools and other new technologies, allowing advisers to service more clients more efficiently.
“As these efficiencies grow, firms could unlock the ability to service lower-value clients – something they currently identify as too time consuming for the profits available.”
tara.o'connor@ft.com
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