In what has been a challenging year from both an economic and regulatory perspective, resilient advice firms are embracing change and looking to the future, reveals new research from Dynamic Planner.
Published today, Dynamic Planner’s third annual Spotlight Report ‘Resilient and Embracing Opportunity: The financial advice landscape in 2023’, has found that while regulation was cited by 1 in 4 as being the no 1. headache for 2023, firms have shown their mettle, with 9 out of 10 confident they have met the key outcomes of Consumer Duty despite the significant challenges it presented.
Technology has been a key enabler, with 85% of the group, drawn from one of the largest advice communities in the UK – the 6,950 users of Dynamic Planner – saying it has improved their ability to serve clients, and close to three-quarters believing it is also helping them to meet regulatory requirements.
Yasmina Siadatan, Chief Revenue Officer at Dynamic Planner said: “The financial advice industry has embraced technology and its ability to help firms meet regulatory requirements, whilst unlocking productivity gains and deepening client relationships. Advisers were faced with a significant test this year in the form of Consumer Duty – but despite the challenges, the mood is one of resilience and looking to the future.”
Overall, the picture that emerges from this year’s survey is of a thriving industry. Firms continue to increase adviser numbers, and the vast majority of advice professionals are serving more clients than they were three years ago. However, 2023 undeniably brought challenges in the form of a more difficult economic environment and a major regulatory deadline. As a result, the picture is more nuanced than it was in 2022.
Yasmina Siadatan continued: “Overall, despite the economic environment and regulatory shift, the mood is positive, and some of the challenges may be easing as 2023 draws to a close. Although Consumer Duty implementation has not been easy with firms viewing regulation as their biggest headache – they also are confident they have got it right.“Firms are making significant productivity gains through the use of apps, tools and other new technologies, allowing advisers to service more clients more efficiently. As these efficiencies grow, firms could unlock the ability to service lower-value clients – something they currently identify as too time- consuming for the profits available.”