FundsNetwork commissioned research to find out what the biggest business challenges advisers are facing. This 12-page report presents the results of the survey along with our thoughts on how we can help advisers address these challenges.
It revealed the top four challenges as:
1. Compliance burden and regulatory change
80% of advisers say the compliance burden and regulatory change are among their top three business challenges. 50% say it’s their #1 business challenge. The top complaints from advisers are that regulation and compliance cost advisers and their clients’ time and money; that the rules are constantly changing and that they erode consumer engagement.
2. Back office administration and business efficiency
Back office administration and business efficiency are a top business challenge for one third (32%) of advisers. Back office administration and a lack of business efficiency is driving up the cost of advice for clients. Advisers think technology can help but many don’t know what technology to use and are often frustrated with what’s been implemented in the past.
3. Business management
Business management issues such as training new staff and succession planning are a key challenge for over one quarter of financial advisers. Business management challenges vary based on the size and maturity of the business. Small firms struggle more with succession planning and large firms struggle more with hiring, training and technology investment.
4. Stock markets and geopolitical risk
Among the 75% of advisers who say that a business challenge is keeping them up at night, one quarter are worried about stock markets and geopolitical risk. Advisers worry that stock market declines will erode portfolio values and geopolitical concerns will drive up servicing costs (due to increased number of enquiries).
To read the full survey, click here
