Bush said this shows advice firms need to adopt a new way of thinking for smaller client investments.
“In our mind this makes for perfect handling in an online and lighter touch environment where you can match the work being undertaken by advice firms by the size of return,” he said.
Likewise, 60 per cent of advisers surveyed agreed that FCA intervention in the lower end of the advice market could be successful in reducing the advice gap.
Furthermore, some 62 per cent of surveyed advisers agreed that the FCA’s proposal for a low-cost simplified advice regime will have no impact on their businesses, as it targets different consumers with smaller cash balances.
Without this, Wes Wilkes, chief executive of wealth manager Net-Worth NTWRK said the impact is “inevitable and clear”.
“Clients with lower perceived value or simpler requirements, will either find it difficult to obtain the services they need or will only have access to a 'lighter' service as firms attempt to assess and order their value measure appropriately,’ he said.
Wilkes added: “Some people will be 'priced out' and this is a sad consequence.”
Mental health pressures
The survey results from Embark also revealed that a significant number of advisers are suffering with various mental health challenges as a result of the current difficult business environment in the UK.
Some 40 per cent of surveyed advisers said they are experiencing greater levels of anxiety, while 43 per cent said they are struggling to find motivation.
Of those who have reported increased mental health pressures, 70 per cent agreed that rising business costs were a contributing factor.
Embark’s intermediary distribution director Ranila Ravi-Burslem said that people’s awareness of mental health and their willingness to discuss it has “grown immeasurably in recent years”.
“We know from our engagement with advice firms that they are really feeling the impact of heavy compliance burdens, higher workloads, and increased business costs, but our survey really helps put this into perspective.
“Providers and platforms must do more to support advisers and help lighten their workload. We are determined to be the easiest and best-connected platform on which to do business and are investing heavily to deliver this,” she said.
jane.matthews@ft.com
