Only 18 per cent of advisers surveyed said they were fully prepared for the upcoming consumer duty regulation, with 6 per cent having not started to look at it yet.
Sustainability
The survey revealed 76 per cent of advisers were specifically considering sustainability and ESG factors as part of their fund selection process, an increase from 43 per cent polled in 2019.
This followed an increasing number of advisers’ clients who have begun to explicitly specify that their investments should reflect ESG factors.
It found that more than half (56 per cent) expected an investment manager to consider sustainability and ESG factors as part of investment decision making to minimise risk and maximise returns, with only 8 per cent of advisers prioritise maximising returns and minimising risks entirely over the sustainability of investments.
A further 51 per cent of advisers have also seen an increase in the number of clients asking for sustainable investment options over the past 12 months, down from 75 per cent in November 2021.
But despite this, 37 per cent of advisers did not think they received enough information to demonstrate investment managers which actively engage were driving change
Hepburn said: “This year’s survey finds that, despite clients’ interest in sustainable investment solutions, the number of advisers who feel confident about discussing this topic with clients has reduced.”
Doug Abbott, head of UK intermediary at Schroders, said: “The findings of Schroders UK Financial Adviser Survey are in many ways unsurprising. Following many months of market uncertainty as a result of global and domestic factors, clients have become even more bearish than we saw in previous iterations of this survey.
“Interestingly advisers are anticipating inflation and interest rates to reduce in the future and expect to see their cash and government bond allocations come down in favour of equities over the next 12 months.”
He added: “What is however positive to note is that despite market headwinds, clients appetite for sustainable investment opportunities remains strong, with 89 per cent of advisers reporting that they think events over the past two years have reinforced the importance of stewardship and using an asset manager who actively engages with company management.”
sonia.rach@ft.com
What do you think about the issues raised by this story? Email us on FTAletters@ft.com to let us know
