UK advisers hit capacity as client numbers soar

Capacity issues may emerge as a potential problem for financial advisers as they struggle to keep up with growing client numbers according a new census by wrap platform Nucleus.

Nucleus users saw average client numbers rise by 21% in the last year to 149, with one in five expecting “significant growth” to continue throughout 2018, the wrap platform’s latest survey found.

Growth could come at a potential cost to clients Nucleus as the increased demands on adviser’s time means capacity issues are hitting home for some.

In its annual Nucleus adviser survey, 40% of users said they spent less than 20% of their time with clients. The survey also found that the average values available to invest are also rising, with more than double the proportion of clients likely have more than £500,000 to invest, compared to 2017’s census. Adviser’s also said the as almost three quarters (74%) of respondents said their clients have at least a moderate expectation of digital engagement with their investments.

Barry Neilson, chief customer officer at Nucleus, said: “The growth adviser firms are currently seeing bodes really well for the future. Not only are client numbers and assets going up, but many have recognised the need to engage with them digitally, something that will appeal to future generations as wealth is passed down.

‘Capacity issues’
“Advisers must realise though that they cannot get complacent, especially as capacity issues begin creeping in. Clients have big expectations for the quality of service they receive so the proposition must reflect this. Many will consider integrating technology into their businesses more, while others will look to outsource functions so they can focus more on financial planning.

ABOUT THE AUTHOR
Gary Robinson
Head of Video and Ezines at Open Door Media Publishing. Deputy Editor, International Investment. An experienced journalist and filmmaker with more than 20 years' financial services experience, both as journalist and originally as a fully qualified IFA, Gary works across both International Investment and InvestmentEurope titles. Previous video production credits include projects on BBC, C4 and SKY.

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