One in four advisers will drop clients and focus on fewer, more profitable customers in an attempt to build their business, research suggests.
A survey of more than 900 IFAs by Skandia found 25% will target higher-value customers as they look to add value in a turbulent market.
The study follows moves by several advisers across the UK to shed unprofitable clients that continue to cost the adviser "simply by having them on the books".
Elsewhere, more than one in ten respondents (13%) say they intend to add value by moving to a fund platform.
"Advisers are facing considerable regulatory change and it is very encouraging to see many of them are already focusing on changes to their business model that will help them grow their business and position them well for the proposed changes," Peter Mann, chief development officer at Skandia, says.
"The findings suggest advisers will be taking a more targeted approach to their client base and looking to advise fewer clients but on more of their wealth, very much in line with the new model of advice."
Amanda Davidson, director at Baigrie Davies, says regular assessment of your client bank is essential to a successful business.
"If a client is not profitable, then what are you doing with them on your books? You are running a business, not a charity," she says. Why are you creating a loss-making situation?"IFAonline
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