Financial advisers need to focus on improving their interpersonal skills to build deeper long-term relationships with clients, according to a new report.

Emotional intelligence, empathy and engendering trust are key to meeting the needs of a wider range of clients, according to research by occupational psychologists sponsored by M&G Wealth and Aon.

Aon’s psychologists carried out a series of interviews and workshops with M&G Wealth’s advice team to explore their experiences and challenges.

The report found that the key to closing the advice gap was for the advice profession to continue to focus on greater representation across the industry, greater overall awareness and a deeper understanding of clients’ needs and priorities across the board.

Ross Liston, CEO of M&G Wealth Advice, said the financial advice arm of investment giant M&G would use the research to provide support and training to its advisers.

He said: “We set out to explore how the adviser role has evolved in recent years to identify which behaviours and skills are key to success. This research pinpoints which skills are set to become even more critical to support client outcomes in the future and it majors on the softer skills.

“Providing financial advice is a deeply personal process and, increasingly, it centres on the ability to build trusted relationships and put each client’s unique priorities and circumstances at the root of all decisions.

"The advice process has evolved from focusing on talking about money to better understanding a client’s sense of financial wellbeing and giving them the peace of mind that comes with having a plan in place and a professional working for them.”

• M&G’s report ‘The Financial Advice Paradox’ is available on its website.