INVESTMENTS & PENSIONS
Revelations
1 . CONSUMER DUTY
The number of advisers who think that this will have a high impact on their business has risen from 25 % to 41 % since our last survey . Our May 2023 survey was completed prior to the implementation deadline and clearly the work required to comply with The Duty has resulted in a change of view . Most advisers also indicated that the key priority for them for the continual implementation of The Consumer Duty in 2024 will be the ongoing assessment of fair value using customer feedback . Many advisers are looking for help and support . The implementation of The Consumer Duty is about evolution and not revolution .
2 . ADVISER FEES
44 % of advisers indicated that they feel a downward pressure on fees . However , the number of advisers charging between 0.5 % and 0.75 %, on an ongoing basis , has sharply increased from 37 % to 53 %. This has been at the expense of those charging less than 0.5 % so we are not really seeing this pressure translate into change .
69 % ( an increase of 10 % since May 2023 ) also indicated that The Consumer Duty would put pressure on the ongoing advice charging model . We are starting to see some subscription models and hybrid models emerge in this area so this is definitely one to review over the next few years .
3 . WEALTH TRANSFER
The landscape here continues to be challenging and despite much noise on this topic , 84 % of advisers still have no strategy for younger clients . The number of advisers prepared to advise clients with less than £ 50k to invest has reduced to an all-time low of only 25 % ( from 52 % back in 2019 ). Perhaps the proposed advice guidance boundaries work being undertaken by the FCA will help to address this ?
Furthermore , 90 % of advisers have no strategy for advising or retaining women . A separate survey by Schroders recently indicated that only 34 % of widows currently inheriting wealth will remain with the adviser . And with the current lateral transfer of wealth in the baby boomer generation , this pattern of behaviour could become a challenge for some adviser firms . 2
4 . ARTIFICIAL INTELLIGENCE
It ' s probably no surprise that this is now firmly on the radar for many advice firms , but perhaps the pace of change is more unexpected . 70 % of advisers now think that AI technology such as ChatGPT presents an opportunity for their business - a significant rise from 57 % in May 2023 . 73 % also believe that they will implement this in some way into their advice process in the next 5 years . 17 % of those believing that this can be achieved in the next year ! The key area where they believe this would be helpful would be to increase efficiency and automation ; definitely be one to watch in 2024 .
To find out how Schroders can support you , visit our website , contact your usual Schroders ’ representative or call our Business Development Desk on 0207 658 3894 .
Click here to discover more insights from our latest adviser survey .
IMPORTANT INFORMATION
Marketing material for professional clients only , not for onward distribution . The material is not intended to provide , and should not be relied on for , accounting , legal or tax advice , or investment recommendations . Reliance should not be placed on any views or information in the material when taking individual investment and / or strategic decisions . Past performance is not a guide to future performance and may not be repeated . The value of investments and the income from them may go down as well as up and investors may not get back the amounts originally invested . The views and opinions contained herein are those of the author and may not necessarily represent views expressed or reflected in other Schroders communications , strategies or funds . Information herein is believed to be reliable but Schroders does not warrant its completeness or accuracy . Schroders will be a data controller in respect of your personal data . For information on how Schroders might process your personal data , please view our Privacy Policy available at www . schroders . com / en / privacy-policy / or on request should you not have access to this webpage . For your security , communications may be recorded or monitored . Issued in January 2024 by Schroder Investment Management Limited , 1 London Wall Place , London EC2Y 5AU . Registration No . 1893220 England . Authorised and regulated by the Financial Conduct Authority . UK007144 .
16 |
2
Source : Women and Financial Advice - Schroders and Ad Lucem October 2023