A survey highlights the growing importance of corporate clients to the IFA industry.
The findings from Cardif Pinnacle reveal that a large majority (70%) of respondents provide investment advice to limited companies, with 67% including corporate clients in their business growth plans. One in three say corporate clients generate between 20-40% of their business income.
The survey also sheds new light on the level of cash advice IFAs provide to corporate clients. Of those providing cash advice, 82% recommend a range of deposit accounts, 38% life assurance bonds and 56% money market funds.
However, when asked why they don't provide cash advice to corporate clients, 36% say they are unaware of the options available.
Kathy Bryne, head of group investment business at Cardiff Pinnacle, says the findings reveal a dichotomy in the relationship between IFAs and limited companies.
"Its clear from the IFA responses that many corporate clients rely on financial advisers for investment advice, however not all advisers are aware of the options when it comes to managing the cash element of investment portfolios."
She says corporate entities need to protect their cash assets just as much as private investors.
"Although we are pleasantly surprised by the level of revenue generated by corporate businesses, and the importance of cash solutions to these clients, there is much work to be done to educate advisers on the range of tax-efficient solutions that are available."
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