Nucleus has launched a new adviser survey for 2025, revealing some of the biggest challenges facing advisers and the changes shaping the community.
86% of advisers surveyed believe the profession needs to do more to appeal to younger clients yet, fewer than half say they’re currently working with this demographic.
Nearly two thirds of advisers say referrals are a key source of new business with only 1 in 10 using social media to connect with potential clients.
Discussing the rise of the unregulated ‘finfluencer’, 59% said they’ve seen clients negatively affected after following poor or unregulated financial tips online. Just 28% of advisers agreed ‘finfluencers’ have a positive role to play in providing access to financial advice and guidance.
Turning to the regulatory landscape, 75% said that staying on top of changing requirements is a challenge. Firms said changes in government policy were currently the biggest challenge to their firms, with changes to regulation scoring third.
Mergers and acquisitions remain a talking point in the profession, with 71% believing it’s getting harder for smaller, independent firms to survive. However, 83% of firms say they’re doing a good job attracting and developing talent in house.
Nucleus says the research reveals a profession at a pivotal moment – arguably caught between two worlds.
On one hand, traditional values remain strong. Word-of-mouth referrals are still the bedrock of growth, relationships are long-standing, independence is fiercely protected. On the other, advisers report they face a new wave of pressures such as digital disruption, changing client expectations, rising regulatory demands, and a growing sense that younger generations are slipping further from reach.
The profession is navigating the tension between proven ways of working and the need to adapt to connect with the younger generation, respond to the rise of external influences shaping financial decisions, and to operate efficiently while complying with Consumer Duty.
And whilst the report captures how firms are managing that tension, there’s optimism too. Many firms are investing in talent, succession planning, and smarter ways of working. They’re not just looking to survive the changes ahead - but to shape them, especially when considering how to attract a younger demographic to financial advice.
Paul Bagley, distribution director at Nucleus, said: “The voice of advisers is clear: change is not coming - it's already here. The question is no longer whether the profession will transform, but how it will transform in a way that serves both advisers and the clients who desperately need their help and support.
“Our survey results highlight that while regulatory demands and digital disruption continue to reshape the landscape, advisers remain committed to delivering trusted, personal advice in a changing world.
“By investing in talent, embracing smarter ways of working, and staying focused on what clients really value, many firms are not only navigating today’s challenges – they’re helping to define the future of financial advice."
Andrew Tully, technical services director at Nucleus, added: “The FCA’s proposed targeted support regime is a positive step towards closing the planning and advice gap by making regulated guidance more accessible—especially for those dealing with pensions and investment decisions.
“It offers advisers a valuable opportunity to engage with underserved groups, demonstrate to people that advice may be an option to consider at the appropriate time, and promote greater financial inclusion. It’s crucial the Government and regulators continue to do more to highlight the benefits of taking regulated financial advice.
“We’ll continue to champion financial advisers and planners because they’re key to improving confidence of those approaching and in retirement and to lobby government and regulators for a clearer more supportive environment that enables the profession to thrive.”
