Newer advisers will be hit hardest by the financial impact of the coronavirus crisis due to their reliance on new business, financial advisers have warned.
Experienced advisers said attention has turned to the drop in new business that has knocked initial fees and one-off payments.
Businesses at an earlier stage of their lifespans are likely to rely more on initial revenue, which is set to be worst affected by the market and financial uncertainty caused by the coronavirus crisis.
Ruth Whitehead, of Ruth Whitehead Associates, said: “I’m sure I am not the only IFA firm deeply grateful for ongoing income, however depleted, in the current circumstances.
“I know so many firms almost entirely dependent on a constant flow of new instructions who are deeply worried about the future.”