Six in 10 financial advisers reported an unexpected increase in client numbers last year despite the pandemic restrictions causing major upheaval.

A survey of 250 advisers by fund data and technology provider FE fundinfo found most reported a boom in demand for their services last year.

Remote working also helped to cut costs and to serve new clients, the survey found.

There was also an increased interest in ESG investing among investors, the survey found.

The survey contradicts previous comments last year which suggested that many advisers, at least early on in the pandemic, found it difficult to find and onboard new clients remotely. 

Despite the challenges, nearly 60% of advisers surveyed by FE said they were able to increase client numbers over the past 12 months.

The report, “Thriving Through Turmoil: How Financial Advisers navigated a year of unprecedented change”, found:

• Only 5% of advisers saw a decrease in client numbers
• 89% increased investment in their businesses with 58% investing more in technology and 26% investing more in recruitment
• 58% feel more positive about their business outlook compared to the previous year

The report found that advisers adapted quickly to the new conditions by using technology to spur remote working. 

Some 40% said adoption of new technology was one of the biggest opportunities from the pandemic and a similar number said they were able to reduce operational costs through remote working.  

Despite the optimism, advisers were wary about the long-term effects of increasing costs, regulation and market conditions in the wake of Covid-19 and Brexit. 

Nearly three quarters (73%) said the burden of existing regulations was their biggest concern for the year ahead, followed by increasing costs driven by PI insurance (53%) and uncertainty in the markets caused by Covid (35%) and Brexit (35%).

Mark Chanda, head of adviser sales at FE fundinfo, said: “With increased investment in their businesses and in technology, advisers are adapting well to the new environment and will arguably be in an even stronger position to take advantage of further opportunities which will undoubtedly arise. 

“What we have seen from our research is that on the whole advisers are being nimble and making the most of the new opportunities on offer. For those adapting to the new way of working, a large pool of non-advised potential clients who are sitting on increased savings pots presents an opportunity for further business growth.”

• FE fundinfo research was conducted in November and December 2020 and January 2021. It consisted of 45 questions and was completed by 250 financial advisers.