Rising regulatory and administrative burdens are limiting the time financial advisers can dedicate to clients, according to a new study by Rathbones Group.
The findings highlight a growing conflict between advisers’ desire to provide holistic financial planning and the practicalities of a demanding regulatory landscape.
The independent survey of 100 independent financial advisers found that the majority are feeling the strain.
A significant 77% stated that compliance requirements are restricting the time they can spend on financial planning.
Meanwhile, 69% said that portfolio management tasks are taking precedence, and nearly half, 49%, cited a lack of administrative support as a key constraint.
The regulatory pressure is also affecting portfolio management itself.
Ninety eight per cent of IFAs reported that compliance and documentation requirements already cause delays in making timely portfolio adjustments, with 18% describing the impact as significant.
Looking ahead, 91% expect this burden to increase over the next three years.
These pressures come at a time when advisers believe their core value proposition is under threat.
Two-thirds (66%) of those surveyed said that offering holistic, forward-looking financial planning is what truly distinguishes their service.
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The study’s release is timed with Rathbones’ launch of an enhanced actively managed MPS.
The new service is designed to help advisers streamline portfolio management and meet regulatory requirements more efficiently, while maintaining transparency and control.
The suite includes seven risk-rated portfolios, with an ongoing charges figure (OCF) capped at 0.5% and no discretionary fund manager (DFM) fee.
Each portfolio is constructed using three Rathbones-managed funds, which form the core of the firm’s risk framework.
Andrea Yung, investment director at Rathbones, commented on the findings, stating that advisers are under increasing pressure from both regulatory and time constraints.
She added, “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 anticipating that clients will place increased value on both financial planning and portfolio management in the coming years, Yung believes that “the ability to offer the best of both worlds – tailored advice and high-quality investment solutions – is becoming essential.”
