Bridging the Gap

Why the advice gap is growing – and how we can close it.

Chapter 1 Chapter 2 Chapter 3 Contributor profiles

A word from our CEO

Introduction

The advice gap looks set to grow substantially – with significant implications for the financial advice profession.

60% of the advisers we surveyed said they had turned away prospective new clients in the last 12 months, which provides a reasonable indication of the size of the current advice gap.

Some of these prospective clients will have found another adviser. Nonetheless, it is a reminder that an adviser’s time is finite. As wealth passes down the generations, and becomes dispersed among potential new clients, we may see a rise in the number of people seeking financial planning and investment advice.

Yet, as things stand, there is no guarantee that the industry will be able to meet a rise in demand. In fact, with many advisers planning to leave the profession in the next few years, the supply of advice looks set to contract substantially in a relatively short space of time.

This report looks at two areas where enterprising advice firms could profitably fill the advice gap: recruitment of new talent, and adoption of new, technology-driven business models.

Chapter 1