- Number of client accounts ‘ceased’ by advisers climbs sharply, according to FCA data released yesterday (Source: The retail intermediary market data 2024 | FCA)
- 2024 saw 335,286 client accounts closed by advisers, almost double the 182,178 recorded in 2020
- Advisers need solutions that allow them to manage client accounts at the lower end of the scale cost efficiently, such as through a more streamlined digital solution
- Research from the latest Lang Cat Advice Gap report shows that two-thirds (65%) of advisers would find value in a digital solution that allows them to ‘incubate’ clients with simpler needs before moving them to a more comprehensive service as their wealth grows*
- One third (31%) of advisers surveyed also said better digital channels would enable them to attract or retain more clients who want either limited in-person interactions or who wouldn’t otherwise be profitable to firms, as well as a further 26% who say they could service more clients
- AJ Bell Touch was launched during the summer to help augment the adviser-client relationship and enable advisers to service a wider range of clients
Jeremy Mugridge, AJ Bell advised marketing director, says:
“The FCA’s latest data highlights the growing number of clients that advisers no longer feel they can service, and in many cases this is likely because it is not cost efficient to do so given the lower wealth profile of the accounts – but it doesn’t have to be this way. Rather than losing valuable clients of the future, advisers need to be able to service those who have smaller accounts now to ensure they do not leave the advice market entirely.
“We know that advisers want to service as many clients as is feasible, and that they need solutions from providers allowing them to do that as easily as possible. Technology has to play a pivotal role in the evolution of the advice process so that these potential clients of the future aren’t left by the wayside, along with the wealth they could accumulate over time.
“Advisers need to feel confident they can service clients with lower wealth profiles as efficiently as possible. Lang Cat research earlier this year showed two-thirds of advisers would find value in a digital solution that allows them to ‘incubate’ clients with simpler needs, with net support for digital solutions that allow them to attract, retain and ultimately service a more diverse portfolio of clients also high.
“AJ Bell Touch helps to solve part of that problem by augmenting the adviser-client relationship at the point when these clients may otherwise end up leaving the advice market. What’s more, in an increasingly uncertain regulatory environment the importance of advice during the estate planning and intergenerational wealth transfer process has never been greater, and advisers and clients need to feel confident that providers are coming up with the solutions required to more efficiently incubate family wealth to secure their financial prospects in the long term.”
*Source: The Lang Cat | The Advice Gap 2025