Business optimism abounds as advisers contemplate challenges in the months ahead

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• Standard Life’s research highlights challenges concerning financial advisers

The majority of financial advisers, paraplanners and business owners (advisers)1 feel optimistic about business in the coming months, despite concerns about external factors such as the economic recovery and cost of living issues, according to research1 by Standard Life, part of Phoenix Group.

Nine in ten (89%) advisers feel positive about their business in the year ahead, including 14% who are very optimistic. Just 11% feel pessimistic.

However, Standard Life’s research, conducted among 600 financial advice professionals, finds there are widespread concerns about external factors that could have more of an impact in the next year. More than two in five feel pessimistic about the economic recovery and investment returns (both 44%), while 70% are downbeat about cost-of-living issues.

Current challenges for advisers

When asked about the challenges advisers are currently facing in their business, market volatility was cited as the main issue, with 62% saying they are having to contend with this. Other significant challenges were:

• Servicing existing clients (36%)
• Consumer Duty (35%)
• Costs of running the business (33%)
• Compliance (33%)
• Cost of living issues (32%)

Chris Hudson, Retail Advised Managing Director at Standard Life, commented: “The economic environment has been particularly turbulent in the last year, and advisers have had to contend with and support their clients through unforeseen circumstances. While these and other challenges are likely to persist for some time, the fact that they are feeling optimistic demonstrates their resolve and the sector’s resilience in the face of uncertainty. Furthermore, significant industry developments like Consumer Duty are approaching which will put further strain on advice businesses. But such developments, along with recent changes to pension taxation and allowances in the Spring budget create business opportunities to engage clients in value adding conversations.

“It’ll be a busy year for advisers, but with consumers facing a difficult financial climate and pressures on their ability to save, it’s more important than ever that they can rely on expert advice to help navigate this period.”

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Notes to editors:

Based on a Standard Life adviser relationship tracker that monitors satisfaction and attitudes from a random sample of contactable Advisers, Paraplanners/admin and Business Owners; over 600 took part in the survey with 460 completing all questions in fieldwork, October 2022.

About Standard Life

• Standard Life is a brand that has been trusted to look after peoples' life savings for nearly 200 years
• Today it proudly serves millions of customers who come to Standard Life directly, through advisers and through their employers' pension scheme.
• Standard Life is part of Phoenix Group, the largest long-term savings and retirement business in the UK. We're proud to be building on nearly 200 years of Standard Life heritage together
• Our products include a variety of Pensions, Bonds and Retirement options to suit people's needs, helping our customers to invest and save for their future. We're proud to offer a leading range of sustainable and responsible investment options.
• We support our customers on their journey to and through retirement with comprehensive, easy-to-understand guidance so they can invest in the right way for their needs, and plan a future they feel confident about
• The value of investments can go down as well as up and may be worth less than originally invested.