Advice firms dedicate more time to internal processes than client meetings.
- 65% of advisors’ time is spent on business operations, 35% on client interactions.
- Governance, risk management, and compliance are time-consuming tasks for firms.
- Significant concerns exist over the adequacy of compliance support provided.
- Many firms struggle with accessing and maintaining quality compliance data.
Advice firms are increasingly devoting a substantial portion of their operational hours to managing internal processes rather than client engagement. According to a report by Model Office in collaboration with Fidelity Adviser Solutions, 65% of advisors’ time is directed towards internal business operations and compliance, leaving only 35% for client meetings. This allocation raises questions about the efficiency of time management within the consultancy sector.
A deeper analysis of the data highlights the effort spent on governance, risk management, and compliance, which can range from six to 16 hours weekly. This investment of time indicates a pressing need for advice firms to streamline these activities, ensuring that they do not overshadow client-focused tasks.
There is a notable concern amongst half of the advice firms about the lack of rigorous outsourced compliance support, especially with the Consumer Duty in mind. One in three firms share similar anxieties regarding their internal compliance frameworks. This situation suggests a potential gap in the compliance infrastructure that needs addressing to support better firm operations.
Additionally, the report sheds light on the challenge firms face in accessing and maintaining quality compliance data. A significant 50% of firms report difficulties in both the availability and quality of such data, while only a third feel confident in obtaining the necessary information promptly. This highlights an area in urgent need of improvement to enhance operational efficiency and effectiveness.
Advice firms, facing considerable compliance burdens, must realign strategies to prioritise client engagement more effectively.
