Voice of the Adviser – Q1 Pulse
Market volatility concerns rise as IFAs navigate geopolitical uncertainties
Four in five advisers expect increased market turbulence
The financial advisory landscape is bracing for turbulence as four in five IFAs anticipate increased market volatility compared to last year. Interestingly, this uncertainty has become their primary challenge this quarter, yet half see a silver lining—expecting investors to seek more professional guidance as a result. The unsettled market appears to be driving client engagement, with 57% of advisers noting heightened interest from investors during volatile periods.
UK economic outlook remains pessimistic while Europe gains favour
The UK economic outlook remains bleak, with merely 13% of IFAs forecasting improvement while a substantial 62% expect further deterioration. Despite marginal gains at the start of 2025 following last year’s sharp Q3-Q4 decline, confidence remains subdued.
Initial optimism surrounding Donald Trump’s presidency has rapidly waned after his first months in office, yet advocacy for UK markets has held relatively steady, dipping slightly from 24% to 22%. Europe has emerged as the favoured market, attracting nearly twice the supporter base it had at the close of last year.
Investment sentiment stabilises despite continued caution
Investment sentiment shows signs of stabilisation, with nearly two-thirds of IFAs expecting investment levels to maintain their current position. Yet caution persists—23% anticipate a decrease in investments, outnumbering the optimists by 10 percentage points. International uncertainty continues to dampen enthusiasm for foreign equities, with only a third of advisers recommending them for the coming year.
AI adoption accelerates as perception shifts
Meanwhile, AI adoption amongst financial advisers continues its steady climb, with 40% either already implementing (16%) or planning to introduce (24%) artificial intelligence into their operations. The perception of AI as a threat has reached its lowest point at 21%, though, curiously, as adoption increases, fewer advisers now view it as an opportunity—dropping from 56% to 44%.
ISA season insights reveal potential reform opportunities
As ISA season unfolds, reform opportunities are coming into focus. Nearly half of advisers believe eliminating the ISA allowance would positively impact investments, while most suggest that increasing the allowance would boost Stocks and Shares ISA participation. Additionally, enhanced education and removing Cash ISA tax benefits feature prominently among recommendations for improvement.
Opinium has launched the fifth wave of the Voice of the Adviser report, continuing to track financial attitudes and behaviour of financial advisers across the UK. We also captured adviser attitudes and behaviours towards AI, assessing the current level of take-up, perceived benefits, and potential concerns about development and job security.
To download the report, click here.
If you would like to discuss these results, get in touch here: IFACommunity@opinium.com
