What are other key challenges for financial advisers this year?
Financial advisers in the UK consider the rising cost of doing business as the biggest challenge this year, according to new survey findings from health and life insurer The Exeter.
The survey revealed that 32% of advisers see rising operational costs as their primary challenge over the next one to two years. Other key concerns include mortgage market volatility (27%) and continued financial strain on consumers (26%).
While client retention remains important, it ranked lower on advisers’ list of challenges, with 21% citing it as a key issue. This underscores the need for advisers to strengthen client relationships to ensure ongoing engagement with financial advice.
Regulatory changes also remain a significant concern, with 19% of advisers highlighting compliance with the Financial Conduct Authority’s (FCA) Consumer Duty and potential new regulations as key challenges. The FCA’s ongoing probe into pure protection insurance has further heightened regulatory scrutiny.
The survey also found notable differences in priorities between male and female advisers. Male advisers were more concerned with financial pressures, while female advisers focused more on healthcare investment and its effect on insurance demand.
Rising business costs were cited as a key concern by 33% of male advisers compared to 29% of female advisers. Consumer financial pressures were also a greater worry for male advisers (29%) than for female advisers (20%).
In addition, 26% of male advisers raised concerns about changes to commission structures, compared to 18% of female advisers, while 24% of female advisers were more concerned about government investment in the NHS, versus 20% of male advisers.
“These findings highlight the numerous challenges advisers will face over the next two years,” said Karen Woodley (pictured), head of healthcare distribution at The Exeter. “However, advisers should remain confident in their ability to overcome these obstacles, having successfully navigated economic pressures, market uncertainties and regulatory reviews in the past.”
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