Increasing numbers of advice firms are actively planning to hire more staff this year, according to a report.

Some 45% of 631 advisers and Paraplanners who were polled said they were planning to recruit in the next 12 months.

This has risen from 40% a year ago, and 31% in March 2013. The figures were compiled for Aviva’s Adviser Barometer.

Over 30% of advisers reported their firms’ income is over £1m, compared with 26% at the same time last year

The research also found the number of advisers considering changing their main platform is slightly up from last year, with 14% saying they are considering this. However, this level has barely changed since September 2013.

Functionality remained the main reason for advisers considering change, but was relatively less important than previously, with 59% of advisers saying this is the main reason compared with 72% a year ago.

Value for money, and cost, were both cited by 48% of advisers as a key reason which shows the importance of balancing these two related factors.

‘Financial strength’ has become more important as a factor behind wanting to change a main platform provider – 33% said this in November 2016, compared with 30% in November 2015, and 24% in May of that year.

Nearly all advisers (98%) conduct due diligence at least annually, with 4% saying they do it more often than that. 13% conduct due diligence with every new client.

The report showed a doubling in the number of advisers who said that economic uncertainty was a key concern, up from 21% this time last year.

The same number also cited the impact of Brexit as one of their biggest concerns, and 39% also thought the Trump victory in the US election had a worrying potential for the future of the advice industry.

But there has been little actual change, in adviser or client behaviour, since the June 23 vote, the results suggested.

Some 84% of advisers reported no additional demand attributable to the Brexit vote, and where this has been seen it is largely from clients requiring assurance only (77%). Of the others, 30% were looking to turn cash into investments with almost equal number (27%) doing the reverse (investments into cash).

But 78% of advisers say their main concern about Brexit is potential market volatility, and a further 35% said changes in regulation concerns them.

Only 2% of advisers have reviewed their providers following the Brexit vote, with advisers saying the main reason for staying put is wanting to use firms with more stability (46%), wanting to use UK-based firms (18%), and using firms with a diversified business (16%).

Concerns about the financial advice market, whilst continuing to reflect on-going issues such as regulatory fees and levies (a concern for 54%) and PI costs (46%), have coalesced around macro factors. Although one in four are still concerned about staying profitable, this has shown a significant lessening of importance from a year ago, where 45% cited this as a key concern.

TimOrton, CEO Aviva Adviser Platform, said: “The most concerning factors for advisers in the next six months are the ramifications from Brexit and Trump’s presidency, but factors which advisers can control, such as remaining profitable, have become less of a concern for them.

"I think this is also a reflection of the way the market has grown and strengthened since our survey began back in December 2011.”