Less than half of UK advisers (43%) said they are confident about their business’ prospects over the next twelve months, according to a new white paper.

Nearly a fifth (19%) of those surveyed for the white paper from wealth manager Charles Stanley said they have taken on more advisers to cope with an increase in client demand over the past twelve months.

According to the white paper, only 5% of financial advisers have not been affected by the Coronavrius pandemic. Nearly three-quarters of advisers said they have been impacted significantly by the rise of digitalisation (74%) and 69% have been affected by changing work patterns.

Two in five (39%) of advisers said the events of 2020 boosted their confidence in the future of their business.

Only 4% of those surveyed for the paper said they are now much less confident than they were.

According to Charles Stanley, advisers are anticipating other longer-term shifts such as changing investment trends. They also expect clients to be more engaged in their finances and envisage more engagement from a younger audience.

John Porteous, group head of distribution at Charles Stanley said: “Despite huge economic and social disruption during 2020, it is encouraging to see that advisers have risen to the challenge. Covid-19 has acted as a catalyst and accelerated trends such as digitisation and changing work patterns, and advisers have navigated these choppy waters and come out the other side.

“It is clear that client behaviours are changing with more appetite to engage with their financial futures, often at an earlier stage than they might have previously done.  Many advisers are optimistic about their prospects in both the shorter and longer-term, having recognised that new opportunities are being created.  Adapting and developing a role as a trusted partner for the whole family and engaging with younger generations can help them future-proof their businesses.” 

Research was carried by Censuswide among a UK representative sample of 203 IFAs. The survey was completed between 28 October 2020 and 03 November 2020.