Rising compliance and portfolio management demands are reducing the time financial advisers can spend addressing clients’ concerns about their financial affairs.

More than three-quarters, 77%, say compliance requirements limit time for Financial Planning.

According to analysis by wealth manager Rathbones, 69% of advisers say portfolio management tasks take priority, and 49% cite lack of administrative support as a key constraint.

Increasing regulatory demands are also affecting advisers’ ability to manage portfolios effectively with almost all, 98%, blaming compliance and documentation for delays in timely portfolio adjustments.

Nearly one in five, 18%, saying the impact is significant and, looking ahead, nine out of 10, 91%, expect the burden to increase over the next three years.

The pressure comes as two-thirds, 66%, of advisers say that offering holistic, forward-looking Financial Planning is what sets their service apart in today’s market, especially amid ongoing changes to tax, pension, and inheritance rules. 

Andrea Yung, investment director at Rathbones, said: “Advisers are under growing pressure from both regulatory requirements and time constraints. Many are spending more time on portfolio administration than on the strategic planning that advisers say truly adds value for clients. 

 



“With 43% of advisers stating that their clients will place increased value on both Financial Planning and portfolio management over the next three to five years, the ability to offer the best of both worlds – tailored advice and high-quality investment solutions – is becoming essential.”

Other findings from the study: 

 



Key factors influencing IFAs’ portfolio decisions

• Saving time is the top priority for IFAs when building portfolios (60%).
• Ability to manage risk is the second most important factor (55%).

How IFAs spend their time

• Client meetings and relationship building: 34% 
• Financial Planning: 29% 
• Portfolio management: 21% 
• Other business activities: 17% 

Approaches to building client portfolios

• Follow in-house models: 72% of IFAs 
• Build each client portfolio individually: 69% 
• Use third-party model portfolios: 52%
• Fully outsource to a provider or TAMP (turnkey asset management platform): 40%

• The findings come from an independent study of a focused peer group of 100 IFAs commissioned by Rathbones Group.