Accountants are becoming concerned that growing demand for personal financial advice from clients is putting them at risk of exceeding their professional expertise, according to new research from Bower Private Clients.
Its study found that 36% of accountants had experienced an increase in demand for advice about personal finance from clients in the past 12 months with help on inheritance planning one of the major sources of inquiries.
However the growth in demand is causing concern; 31% of accountants say they are worried that some of the advice they are giving goes beyond their core expertise. 6% of accountants said they have provided detailed financial advice themselves.
45% of accountants believe their work with independent financial advisers will increase over the next 24 months as a result of recent changes to pension rules.
However, the biggest driver is a need for inheritance planning – 72% of accountants say inheritance advice is a major area while a growing client base (59%) and an increase in property transactions among clients (31%) were other major reasons. 33% of accountants received enquiries on accessing property wealth and equity release from clients.
Bower Private Clients says it is anticipating a surge in demand for specialist advice and bespoke solutions for retired homeowners who need to maximise their property assets.
Andrea Rozario, chief corporate officer at Bower Private Clients, said: “It’s no wonder that accountants are seeing clients increasingly enquiring about financial planning given the recent changes in pensions, high property prices and the complex nature of estate planning. The wealth tied up in homes is a potential source of retirement funding but people need to be properly advised.
“Given more demand for advice in what is an increasingly complex market, it is very important for accountants to have access to trusted partners. Advisers recognise that property wealth can offer a variety of solutions for their clients.”
