Overburdened financial advisers are dropping out of the industry due to the current regulatory environment which is reducing adviser numbers, despite demand for advice increasing, according to new data released today.
Research published by industry advice network Openwork warns that the demand for financial advice is "not being met", with just 15% of adults regularly meeting a financial adviser despite more than further 56% believing they would benefit from advice.
The survey of 1,014 adults found demand for advice rose to 7% among under-35s, but warned that the number of advisers will not meet that demand unless it begins a rapid period of new growth.
Openwork says that growing demand for advice - in part due to the launch of pension freedoms - will not be met as many more advisers are predicted to sell their businesses due to regulatory burden and growing administrative costs.
Last week, as reported, research from UK adviser owned platform Nucleus found the number of advisers spending 40% of their time on administrative tasks has tripled in a year.
Wealth management firm Succession Wealth today alsoi predicted the number of IFAs and wealth managers in the UK could fall by 7% by 2022, with research suggesting regulations are the main catalyst.
In a survey of 45 wealth managers and IFAs between March and April this year, 51% said the regulatory environment was a "very important" factor for businesses wanting to sell up and 36% said that a growing pressure on costs was a significant driver, Succession said.