Financial advisers have revealed the greatest challenges they face to their profitability in 2021.
In addition to the key challenges of increasing regulatory cost and the impact of a hardening professional indemnity insurance market, an online survey of 70 PFS members in November 2020 showed the greatest operational concern of almost half of them was fewer new clients knocking on their virtual doors this year.
Adapting to greater remote working was identified as the second biggest operational challenge financial advisers face in 2021.
Updating IT processes to cope with the new normal way of working was seen as the greatest issue faced in the year ahead by one in five of the financial advisers polled.
Just one in five financial advisers stated mounting fraud risk was the greatest challenge to the way they work this year.
Keith Richards, CEO of the PFS, said: “The pace of change shows no sign of slowing down in 2021 and will bring new business risks, but also many opportunities to continue to rethink old ways of working, drive greater efficiencies and develop new methods of engaging with clients.
“The Personal Finance Society will continue to support members with the sharing of practitioner ‘good practice’
of ways to continue to safely deliver their vital services to the public in the year ahead.”