(PRWEB UK) 18 August 2014
Adviser firms are focusing on expansion ahead of the introduction of new pension rules scheduled for April 2015 with plans to increase recruitment and invest further in training and development, according to new research* from Prudential.
Encouraged by the initial reaction of savers to the Budget and the Government’s plans for increased pensions flexibility, two-thirds of firms surveyed reported a rise in client enquiries and demand for advice. Around 10 per cent say they have seen a significant rise in enquiries.
Prudential’s nationwide survey of retirement specialist advisers shows growing business confidence with 61 per cent of companies forecasting a rise in turnover and profit from April 2015 onwards including eight per cent expecting a significant increase. This compares favourably to the outlook predicted by many 18 months ago in the lead up to the introduction of the Retail Distribution Review.
Confidence is translating into concrete plans with 28 per cent of companies planning to recruit more advisers, due to the expected increase in demand for services such as pension advice. 18 per cent of companies plan to recruit additional paraplanners to meet the forecast rise in business. And more than two out of five (44 per cent) will invest in training for their existing staff in areas such as tax planning.
Establishing professional connections will be a particular area of focus with 37 per cent of advisers looking for partnerships with tax specialist firms and 23 per cent planning on tie-ups with specialist legal advisers.
Paul Harrison, Head of Business Consultancy at Prudential, said: "While the final detail of the new rules has yet to be clarified, it's clear that advice and financial education will be crucial in ensuring success under the new pensions regime and that advisers are embracing the opportunities.
"We're seeing that advisers are reviewing their business models as they look for growth opportunities. For many firms this means making more efficient use of paraplanners, recruiting more staff and seeking to establish professional tie-ups.
"One of the ways Prudential is supporting advisers is through our partnership with Sifa. We're running a series of nationwide seminars throughout September and October to help advisers secure effective relationships with solicitors."
The study found 81 per cent of advisers surveyed believe the Budget reinforces the value of financial advice for consumers.
-ENDS-
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Notes to editors
*Research conducted between 23 June and 27 June online among 103 UK IFAs by Citigate Research