In 2020, advisers can expect to be in greater demand as estate planning becomes more complex and tax-advantaged investments such as EIS and VCTs become more mainstream.
That appears to be the conclusion of a number of reports over recent months, looking at different parts of the adviser world.
A November survey from Time Investments, for example, found the majority of 55 financial advisers polled saw inheritance tax planning as a key area of growth for their business.
This chimes with our own findings across the year at Intelligent Partnership. Our Business Relief Industry Report in April found 78% of advisers expect their BR business increasing, while our EIS Industry Report in November found 52% of respondents expect their EIS business to grow in the coming year.
We know that the largest generational wealth transfer in history is coming down the line in the coming years, so those advisers who have the knowledge and expertise to help people manage that wealth in an efficient and effective manner are going to be in great demand.
Which is why we have created our first ever Adviser’s Guides to EIS and VCTs. Both these publications offer great insight and useful advice for advisers and paraplanners on how the basics of EIS and VCTs work. They’re comprehensive resources that are designed to support advisers when helping their clients make informed decisions about their investment choices.
However, it’s not just advisers who are searching for greater knowledge and expertise in this area. A recent poll carried out by City AM found that over half of advisers believe small business founders have an increasing appetite for advice.
This places advisers in a vital position, where they need the knowledge and confidence to be able to bring together both investors and potential investee companies, by providing them with the tools to ensure the money can be directed where it is needed.
The Enterprise Investment Scheme and Venture Capital Trusts are just two of the ways in which this process can be achieved, so being aware of them and their benefits – as well as knowing when and where they might be appropriate – are likely to become increasingly important in the years ahead.
As a result, our Adviser’s Guide to the Enterprise Investment Scheme offers advisers the opportunity to understand the basics of EIS investing, and not just from the point of view of the investor, who will want to know what the risks and rewards are, as well a how to claim the tax reliefs and what charges might apply (all of which is covered in the guide).
Rather, the guide goes further than this, giving advisers insights and understanding into the rules surrounding qualifying companies, as well as the types of EIS structures that are available in the market – all things that allow an adviser to gain knowledge into what types of offers from fund managers may best suit their clients.
The same goes for our Adviser’s Guide to Venture Capital Trusts. Alongside the nuts and bolts of what VCTs are, how they operate and what the risks and benefits might be of investing in a VCT, the guide gives clear and practical information on the rules that are placed on VCTs themselves, what research and due diligence might be required of an adviser, plus case studies showing how the model can work in true-to-life situations.
All in all, our new adviser’s guides offer a comprehensive reference tool for advisers just at the time when the market for alternative investments is gaining greater traction and the thirst for knowledge about this area is growing.
To read our Adviser’s Guide to the Enterprise Investment Scheme, click here
To read our Adviser’s Guide to Venture Capital Trusts, click here