Despite some networks and adviser support firms banning the use of Social Media, 2011 has seen a significant increase in the number of IFAs embracing online networking, with more and more joining Twitter and other sites to network and to interact with each other.

Research from IFA Life also suggests that up to 70 per cent of advisers have a profile on LinkedIn, though with the majority admitting to not understanding how to make effective use of the site.

IFA Life's research suggests that approximately 50 per cent of adviserss have a personal Facebook account, but with less than 10% having a business Facebook account. IFA Life estimates that 35 per cent to 40 per cent of IFAs now have a Twitter account.

Founder of IFA Life Philip Calvert said: ""The common perception among many advisers is that Social Media is a time-wasting fad, but large numbers are now fully embracing it as an important business tool.

"LinkedIn is an incredibly powerful site which enables IFAs to raise their profile, enhance the perception of their expertise and to find valuable contacts."

"It's incredibly short-sighted of some networks and IFA firms to ban the use of Social Media, and this will inevitably see IFAs going elsewhere. It's a bit like banning IFAs from attending dinner parties."

Mr Calvert, who has spoken at numerous industry events and who runs Social Media workshops specifically for advisers, says that now advisers are embracing online networking tools, they need them to complement their company websites.

He said: "The Internet is the first port of call for most people who are looking for information on personal finances, but all too often consumers can't see the difference between one IFA and another. Now that IFAs are using Social Media, they need to move to the next step – not just to randomly connect with people, but to use it to manage their reputation and identity online so that they stand out from the crowd."

IFA Life is holding a workshop for advisers on 24 January 2012 in London.