Self-select websites were voted the biggest threat to business (65% of the 138 advisers who voted), with direct investment platforms the second most voted for option (43%). Third in the list was ‘general image of independent financial advice’ which got 29% of the vote.
Additionally, a quarter (26%) still have 20% or more of their annual business turnover coming from platform trail commission, with one in eight of them (12%) having more than 30% of their turnover reliant on this soon-to-go revenue stream.
Advisers were also asked if they had noticed any change in their clients’ long-term appetite for risk since 2008. The majority (44%) said their clients were more cautious initially but confidence has returned although one in five (22%) said their clients remained more risk adverse. Around a third (34%) said they had generally remained the same.
Nick Eatock, Intelliflo’s founder and Executive Chairman, commented:
“Clearly there is concern about the growth of self-select websites and platforms going direct to end customers but I hope the delegates took some comfort from the conference in knowing there are clear digital strategies they can employ that will give them the tools to compete against these threats.
“It was surprising to see that a significant number of the delegates still rely on platform trail commission and with the clock ticking on this it’s essential those firms act quickly to ensure they are not financially disadvantaged once that revenue is switched off.”
