Advisers face capacity issues

by | Jul 4, 2018

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Advisers are facing capacity issues.

So says a new census from Nucleus, the wrap platform which was founded in 2006 by advisers and now has 400 adviser firms on its books.

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 census went on to say that while adviser firms are experiencing fantastic growth, the increased demands this also brings means capacity issues are hitting home for some. It reckons that 40% of users said they spent less than 20% of their time with clients, while it was found that clients most valued the contact time they had with advisers.

What’s more, as client numbers increase, the survey also found that the average values available to invest are also rising. More than double the proportion of clients have more than £500,000 to invest, compared to 2017’s census.

These increases are forcing firms to ensure their service proposition is geared up to match the pace of growth of their business, particularly in a period where some firms are increasing ongoing fees and client expectations are ever rising. This is recognised by Nucleus users as almost three quarters  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.

“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.”


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