Survey finds one in three people considering switching financial advisers

Financial advisers and IFAs cannot rest on their laurels when it comes to client retention, with one in three (31%) people saying they’re considering switching from their current adviser, according to a new study^* from wealth manager Investec Wealth & Investment (UK).

The research amongst 535 UK consumers with stock market-related investments, found that of those clients who were thinking of changing their financial adviser, 37% are considering doing so in the next six months.  Four in five (82%) are thinking about making the move within the next 12 months, and 92% say they think they will have switched within the next two years. Just 4% will wait more than two years before changing.

The survey by Investec Wealth & Investment (UK), which provides products and services to help advisers build a competitive advantage and protect and grow their clients’ wealth, indicates that the switch to another financial adviser may not be all down to how clients rate the quality of advice from their financial advice with 34% rating the advice they receive as “excellent” and 52% judging it as “good”.  Only 13% said their IFA or financial planner gave them “average” advice, and just 1% described it as being “poor”.

Men are more likely to be thinking of switching their financial planner (34%) than women (20%) and, once they’ve made the decision to switch, men are also more impatient to make the move quickly with 85% wanting to change advisers within the next 12 months, compared with 67% of women.

The findings may not come as a surprise to the nine in 10 (91%) financial advisers recently surveyed^** who say that they have seen clients becoming more demanding over the last three years against a backdrop of volatile financial markets and clients’ desire to have greater insight into how their investments and assets are performing.

Simon Taylor, head of strategic partnerships at Investec Wealth & Investment (UK), said: “Building strong and trusted relationships with clients is a pivotal skill for any financial adviser, however our research has shown that there is no room for complacency when it comes to retaining those clients.  People are becoming better educated about the financial markets and want more information on how their investments are faring.  There is a lot of competition amongst the financial planning sector and clients may feel compelled to explore other options if they believe another adviser may be better able to navigate complex financial situations or can help their assets deliver better returns.

“Research has demonstrated that working in conjunction with a DFM can not only help an adviser firm to grow their assets under management but also frees up time to enable the IFA to allocate more time to client relationships thereby supporting client retention.”

Investec Wealth & Investment (UK) works closely with the IFA and adviser community by developing intuitive, market-leading products and services that help firms to build a competitive advantage and help their clients to protect, grow and tax-efficiently pass on their wealth.

It manages more than £40 billion of client assets under management and has 14 regional offices across the UK. From off-the-shelf products through to award-winning bespoke investment portfolios, Investec Wealth & Investment (UK) has solutions that will help firms to win new clients and build stronger relationships with existing ones.

For over 25 years Investec Wealth & Investment (UK) has worked with advisers and built thousands of trusted relationships, earned a reputation for outstanding service. As one of the UK’s leading wealth management companies Investec Wealth & Management (UK) focuses on a relationship-based approach to Financial Planning and Investment Management – and helping IFAs and their clients is its foremost priority. 

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Notes to Editors

* Investec Wealth & Investment commissioned independent research agency Viewsbank to interview 535 UK consumers with stock market-related investments between 30^th June and 3^rd July 2023.

** Investec Wealth & Investment commissioned independent research agency PureProfile to interview 100 IFAs and financial planners across the UK in January 2024.

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About Investec Wealth & Investment (UK)

As one of the UK’s leading wealth management firms, we are trusted with managing £40.7 billion (as at 31 March 2023) of our clients’ money. Our wealth teams work hard at providing Out of the Ordinary levels of service to our clients and with an investment heritage dating back to 1827, we’re built for the long term.

Investec Wealth & Investment (UK) is a trading name of Investec Wealth & Investment Limited which is a subsidiary of Rathbones Group Plc. Investec Wealth & Investment Limited is authorised and regulated by the Financial Conduct Authority and is registered in England. Registered No. 2122340. Registered Office: 30 Gresham Street. London. EC2V 7QN. Member firm of the London Stock Exchange.