"Advisers are embracing the opportunities of Brexit and expect an increase in the number of clients – both existing and brand new ones – who are looking for Brexit-specific financial planning advice"
37% of advisers surveyed who expect to see an increase in demand for their services from existing clients, with a further 16% expecting to sign up new clients as a direct result of the Referendum decision.
The results also reveal that four out of ten (40%) of advisers say that Brexit will have a long-term positive impact on the UK economy and the future of their business. A further 42% believe that Brexit will present specific opportunities for them and their business.
However just under a third (32%) think that quitting the EU will have a long-term negative effect on the economy and their business.
When it comes to their existing clients, most advisers (58%) expect them to be concerned about protecting their retirement funds while a further 56% of advisers say their clients will be looking for support on how to reposition their long-term investment plans, and 54% expect to see an increase in queries relating to drawdown and the effects of volatility on funds.
Additionally, Shawbrook Bank research also shows that almost two in five brokers (38%) feel fairly confident about their business growth for the latter part of 2016.
Over half (53%) of brokers are fairly confident with regard to the post-Referendum lending environment during the latter half of 2016, compared to just 25% who are fairly concerned and 0% opting for very concerned.
Yet the economic climate post-Brexit is seen to be the biggest challenge in the latter half of 2016, with over half (51%) of brokers citing the current economic environment as challenging. Just under a third (30%) believe the biggest consequence following the Referendum result would be a fall in property prices and almost a quarter (23%) expressed fears over a fall in investor demand.
Paul Harrison, head of Prudential’s business consultancy for advisers, said: “Advisers are embracing the opportunities of Brexit and expect an increase in the number of clients – both existing and brand new ones – who are looking for Brexit-specific financial planning advice. This underlines the fact that the result has triggered uncertainty when it comes to financial planning, with people realising their best port of call in uncertain times is often to speak to a qualified, reputable financial adviser who can provide as much certainty as possible and get back to the basics of good financial planning.”
Karen Bennett, Managing Director, Commercial Mortgages commented: “With the implications of Brexit still unclear, it is understandable that brokers may feel a little nervous about the market. However it is encouraging to see a positive outlook in the main - particularly where client demand is concerned - and in spite of the challenges faced there is still much in the way of opportunity. From a Shawbrook perspective, we are confident that those brokers and investors with a long term balanced strategy will continue to prosper as we move into a more settled environment, and we look forward to supporting them throughout the remainder of 2016.”
