Half of UK advisers turn away 5 clients every month

Added 3rd May 2016

Almost half of British financial advisers have turned away up to five potential customers in a month, while one in 10 has rejected six or more people, according to a new study by Prudential.

Half of UK advisers turn away 5 clients every month

The survey, which questioned 206 UK-based financial advisers, found that 60% of IFAs have turned away a potential client in the last month.

Yet despite advisers having to, for various reasons, turn clients away, more than half of those polled expected the number of IFAs operating in the UK to fall by 5% or more this year.

Expanding client base

The research also revealed that a growing number of clients are now coming from the professional services sector, including accountants and solicitors – with 11% of advisers admitting that referrals from this group are the biggest contributor to their new business pipeline.

Four in 10 advisers expect to see referrals from the professional services sector increase over the next 12 months.

Quality of services attracting repeat customers

Meanwhile, 68% of those surveyed say the quality of the service they provide to existing clients is the biggest driver of new business for advisers.

Paul Harrison, head of Prudential’s business consultancy for advisers, said: “What stands out is that the quality of the service and value added by advisers is increasingly a new business referral tool in itself.

“Although demand for advice has exceeded supply, the advice community has reacted strongly to increase capacity by streamlining and improving their service proposition.

“The past few years have been a period of sustained change for advisers so it is worth remembering and re-stating the real value of what advisers do for their customers.”

‘Uneconomical’ advice

In March 2015, the Association of Professional Financial Advisers (APFA) revealed that 42% of financial advisers turned away clients on the grounds of affordability, citing that the advice services they offered were not economical - up 37% on the year before.

Those seeking pension advice were the most likely to be rejected.

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Misleading title

Somewhat interesting, but the title is clickbait and factually incorrect based on the study. The title's statement is that >=50% of advisers turn away >=5 clients every month, but it's actually ALMOST half of advisers turn away UP TO 5.

Posted by: Evan, 04 May 2016

About Author

Monira Matin

Senior Reporter

Monira joined International Adviser in March 2016 from Informa Global Markets where she worked as a eurobond reporter for over two years, covering fixed income markets. She has previously held a number of editorial positions covering politics, insurance and technology. Monira has a degree in Journalism and Economics from City University.



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