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This concern is likely to be driven by geopolitics with 66% of advisers expecting a higher level of disruption going forward.

The survey also found that 95% of advisers are having conversations with clients on merits of cash versus long-term equity investing, a 5% increase from a previous Schroders survey carried out in May this year.

In terms of specific challenges facing advisers 49% cited regulation as the main challenge, up from 32% in November 2022.

Some 69% of advisers anticipate that the Consumer Duty’s ‘fair value’ outcome will exert pressure on ongoing charging models.

Wealth transfer

There is a growing concern among advisers that their businesses could lose assets as wealth transfers between generations with the number standing at 63%.

However, despite the concerns, attracting younger clients is not a top priority for the majority of advisers evidenced by age profile of their client bases and the fact only 25% of advisers would provide advice to clients with less than £50k to invest.

Artificial intelligence

The survey shows that 70% of advisers are now embracing the potential of AI compared to 57% in May with 81% anticipate incorporating AI-based technology applications into their advice process in some capacity.

Outsourcing

Advisers are also increasingly relying on outsourced investment solutions to manage their clients’ assets.

Some 36% of advisers outsource more than half of their clients’ assets under management while 49% outsource more than a quarter.

Looking ahead, 27% of advisers expect to further boost their allocation to multi-asset funds in the next 12 months and 25% to Model Portfolio Services.

To read more on this topic, visit: 91% of advisers concerned about losing assets in Great Wealth Transfer

Gillian Hepburn, commercial director at Benchmark, said: “The Schroders UK Financial Adviser Survey continues to offer valuable insights to help track and evaluate the opportunities and challenges faced by advisers, as well as demonstrating the value of advice, whether this is having conversations about cash versus long-term investing or navigating through challenging markets.

“It is also intriguing to note the impact of Consumer Duty since its implementation and how advisers are starting to respond, adapt and understand its impact.

“We anticipate this to be an ongoing focus for advisers as they continue to review good practice and refine their own work in this area, particularly in the area of ongoing assessment of value using customer feedback.

“This year’s research has also highlighted the significance of two topics; the transfer of wealth and the impact of AI. While AI appears to have gained interest among advisers and a desire to understand the opportunities, the potential impact of wealth transfer is now recognised.

“However, according to the survey, advisers are still primarily focusing their efforts on older, wealthier clients, rather than broadening their scope to include women and the younger generation. Going forward, we hope to see increased engagement with these client segments, as in addition to addressing the advice gap, it will help to tackle concerns about potential asset loss.”

These are now available in Defaqto Engage and Centra software with the initial 20 profiles covering a number of MPS providers including Brooks Macdonald, Quilter and RBC Brewin Dolphin.

Advisers will be able to compare products, funds or DFM portfolios in a peer group on the same basis using the same data.

As well as report on the target market of the product in question and also understand who is not the target market.

The profiles will also make understanding whether a product offers fair value, or assessment of the value of a fund/DFM portfolio much easier by providing a comparison of key benchmarks to the product or fund’s peer group.

To read more on this topic, visit: Defaqto CEO Q&A: ‘AI provides a world of opportunity’

Andy Parsons, insight manager (Funds & DFM) at Defaqto, said: “These profiles will provide enhanced due diligence for an adviser, and complement the documents available from asset managers.

“Each of our Consumer Duty profiles is a 2-page document, structured around the four key outcomes the FCA set out in the rules and guidance: namely ‘products and services’, ‘price and value’, ‘consumer understanding’ and ‘consumer support’.

“Where the data can be clearly compared to other propositions, we have calculated the average for the relevant risk band within Defaqto Engage to clearly show whether it has out/unperformed, takes more risk, is cheaper or more expensive, and if economies of scale are being passed on to the end investor.”

According to the Financial Conduct Authority (FCA) register the firm has been in liquidation since April 2023.

Since October 2020 it has been unable to dispose of, deal with or diminish the value of any of its assets as well as cease pension transfer advice.

The FSCS told International Adviser that it has received eight claims so far that are pensions advice related.

With one being upheld and the rest still in progress.

To read more on this topic, visit: Holborn Assets under investigation by FSCS

It also told IA that it was aware the firm was associated with BSPS and it expects a number of claims to be related to the scheme.

However, until each claim is fully reviewed it cannot specifically say currently what they are related to.

The firm has also previously had the name BlueSky Agency Limited.

The role has been taken over by Simon Colboc which was done as part of a managed succession plan at FECIF.

Stanfield will continue to work with Colboc to ensure a smooth handover.

The change was ratified at a recent FECIF board meeting.

To read more on this topic, visit: Dynamic Planner eyes Europe expansion

Stanfield said: “I initially accepted the role back in 2014, intending to do one full term of 3 years. I have actually done a little over three terms, meaning more than nine and a half years in total – I thus felt that it was time for me to step down, not least to enable Simon’s new ideas and energy to take FECIF forward.

“Having worked with him for many years, I am sure that he will be perfect for both the role and the development of FECIF over the next few years.”

Stanfield will still remain on the board but will have reduced duties to allow him to focus further on this role as chief executive of FEIFA.

Colboc added: “I am honoured and excited to take on this role, as our industry is facing unprecedented change. I will look to inject my experience as best I can and bring together various viewpoints.”