Nearly three-quarters of independent financial advisers (72%) see the burden of compliance and regulatory change as their primary concerns.

In addition, the number who cite tax changes as one of their biggest challenges has climbed eight points since last year’s Autumn Budget.

Research agency Opinium’s IFA Barometer tracks adviser views on the issues most affecting them and their clients.

Alexa Nightingale, global head of financial services research at Opinium, said: “It’s no surprise that tax challenges have risen in importance for IFAs since Rachel Reeves’ Budget.

"Not only are IFAs needing to help clients navigate the immediate and upcoming changes to the likes of capital gains tax, VAT on private schools and inheritance tax rules, but they have also had to work through tax changes that affect their own firms, such as employer NICs.

“As IFAs grapple with these challenges, all eyes will be on Reeves for her Spring Forecast on 26 March, to see whether further tax changes should be anticipated in the year ahead.”

Other main challenges advisers are facing according to the research include implementing consumer duty (31%), supporting clients through economic uncertainty (30%) and adopting AI (15%).

Earlier this month Opimium said its research revealed that the pace of merger and acquisition activity in the IFA market has increased with widespread consolidation under way. About one in 10 IFA firms (9%) acquired other firms since December alone, its IFA Barometer showed.

Opinium said the survey also highlighted a “clear trend” of smaller IFA firms exiting the market. Some 17% of sole traders said that they had sold part or all of their business in the previous 12 months.

• Opinium carried out an online survey of 200 UK independent financial advisers between 20 December 2024 – 7 Jan 2025.