Savings platform Flagstone’s latest poll of UK financial advisers reveals that post-Budget tax uncertainty is driving increased demand for advice from new and existing clients.
The March survey of 198 members of Flagstone’s adviser community, seen exclusively by PA Adviser, found that 53% are seeing more demand for additional services from existing clients. Meanwhile 55% are seeing greater demand for advice from new clients. One-third of advisers said that the demand for ongoing advice, as opposed to ad hoc services, is higher than before the Budget.
Two-fifths of advisers said the tax change rumours of the last few months are creating confusion, while two-thirds see the opportunity to provide clarity and reassurance. Around 60% said clients value their advice ‘more than ever.’
The two biggest issues on advice clients’ minds are inheritance tax (IHT) and cash ISAs, the research found. Almost all advisers (92%) said their clients are most worried about inheritance tax on pensions, a policy that is not scheduled to take effect for another two years. Likewise, for a third (32%) of advisers, concerns surrounding the future cash ISAs are high among clients, and HM Treasury is not expected to provide more clarity on these for several more months.
Claire Jones (pictured), head of strategic partnerships at Flagstone, said: “Access to common-sense, plain English financial advice is needed more than ever. The government is making good on its pledge to increase the tax burden for higher earners around the country, and changes to tax policy are heavily trailed (often for months) before being formally announced, let alone imposed.
“Perhaps if HM Treasury fixes the holes in its leaky ship, concerns would be alleviated to some degree. But either way, the more front-footed advisers can be in the face of financial uncertainty and fears, the greater they prove their worth and value to clients, many of whom will stay with them for the duration of their careers.”
Commenting on the insights, James Dyas from Dyas Wealth Management, added: “Recent tax changes and ongoing speculation have significantly reshaped the financial advice landscape, impacting both clients’ concerns and the way advisers provide guidance. Many clients are increasingly worried about potential inheritance tax liabilities on pensions, and uncertainties surrounding the future of cash ISAs.
“While these challenges are significant, they also present opportunities. These evolving priorities are prompting existing clients to seek more ongoing, comprehensive services, and helping more people to recognise the value of professional advice, leading to an increase in new enquiries and referrals.”
Flagstone is the UK’s largest savings platform with £16bn AUM, as well as the savings partner to many wealth managers nationwide, including St. James’s Place.
