More than three quarters (82 per cent) of financial advisers want to increase the value of their assets under advice (AUA), but just one in 10 have a clearly defined strategy to do so, according to research from Aegon and NextWealth.

The firms have launched a research-led guide to support advisers in growing their businesses, sharing insights into how UK firms are looking to attract new clients and assets, and exploring opportunities presented by an evolving advice landscape.

While the vast majority were looking to increase their AUA, only 10 per cent of advisers had a clearly defined growth strategy and 31 per cent had a general growth strategy but it was not formally defined.

More than a third (36 per cent) did not have a growth strategy, and 18 per cent were not looking to grow their AUA.

The research found that almost half (46 per cent) of advisers were already working with more clients than this time last year.

However, the firms noted that only 14 per cent of people in the UK with more than £100,000 in investable assets were receiving financial advice.

Aegon and NextWealth argued that this represented a “significant opportunity” for advisers to expand their client reach and assume more assets under their service.

When asked what would have the biggest impact on enabling them to attract new clients over the next 18 months, 48 per cent of advisers cited a more relaxed regulatory framework for clients with simpler needs.

This was followed by an easier process for onboarding clients (35 per cent), more efficient ways to serve lower-value clients profitably (33 per cent), and AI technology to improve adviser capacity (32 per cent).

The report stated that businesses that strategically embrace organic growth and adapt to regulatory developments would be well-positioned to thrive, with the new guide outlining six steps advice firms can take when looking to grow their business.

"Financial advice firms are ideally positioned to capitalise on this moment of heightened demand and opportunity,” said Aegon UK managing director – adviser platform, Stephen Crosbie.

“By strategically focusing on organic growth, firms can sustainably extend their services to more clients, which not only benefits them, but would also generate a positive ripple effect across the economy.

“With advancements in technology and a favourable regulatory environment, advisers can optimise their operations and processes to reduce friction and enhance client experiences.

“By supporting more individuals to make informed investment decisions, we harness the potential to drive substantial positive outcomes for everyone involved. This is a transformative moment for the industry, and those who adapt and innovate will be leading the way in shaping the future of financial advice.

“But this research shows that we need to support our advice community, and call for the regulators to implement a more relaxed framework for clients with simpler needs. We’ve come a long way with the imminent outcomes for Targeted Support expected later this year.

“But it’s crucial that the regulators act to provide the necessary backing to enable a more supportive regulatory environment. Together, we can ensure that more people are helped to achieve their financial goals through informed decision-making, backed by a flexible and inclusive regulatory framework.”

NextWealth managing director and founder, Heather Hopkins, added: “Our partnership with Aegon on this guide allows us to explore the critical topic of sustainable, organic growth in financial advice firms.

“The findings reflect the challenge of managing regulatory change and delivering an ongoing service to existing clients, while still finding time for strategic thinking about growth.

“Despite these challenges, the demand for financial advice presents significant opportunities for firms willing to carve their own path and leverage their expertise.

“Our research highlights successful strategies employed by firms, such as deepening client relationships, reconnecting with previously overlooked clients, and developing innovative propositions.

“For financial planners looking to grow, adopting these strategies and innovating in service delivery can unlock organic growth potential. With the right regulatory and support frameworks, we can collectively ensure that more individuals achieve their financial goals, which will benefit their firm, the industry, and the broader economy.”

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