"Many advisers are not ready to manage intergenerational wealth transfer and that around four out of five beneficiaries will switch away from the original adviser."
The survey found a similar number (24%) were concerned about compliance requirements and pressures, and 23% worry about unprofitable clients.
The survey also highlights where advisers want to see efficiency gains. The top four areas included creating business scalability without adding extra staff (34%), preparing client review reports/packs (31%), finding new clients (28%), and technology related frustrations at client information gathering and recording (25%).
Ben Peele, UK managing director of PortfolioMetrix, commented: "Much has been written about the need for younger people to have access to financial advice and our survey shows it is an issue that a significant number of advisers are grappling with. While many people under the age of 30 may not have significant assets to invest right now, a Capgemini report last year highlighted that many advisers are not ready to manage intergenerational wealth transfer and that around four out of five beneficiaries will switch away from the original adviser. Clearly, finding a way to keep the surviving family of older clients with the firm is an issue that merits some careful thought by advisers.
"A Kitces Research study in 2019 revealed that the typical financial adviser spends no more than about 50% on direct client activity-related tasks, and barely 20% of their time actually meeting with clients. Being busy with multiple tasks creates a tendency for adviser business owners to "paper over the cracks with people" but scalability without extra staff is possible with the right technology. However, as a quarter of those we surveyed highlighted, technology is creating frustrations, so getting it right is a major hurdle that has to be overcome. Time spent researching and investing in the right tech can and does result in systems that deliver enormous efficiencies for firms of all sizes."
