Rising compliance and portfolio management demands are reducing the time that financial advisers are spending to address client concerns about their financial affairs, new analysis by Rathbones has warned.

The wealth manager’s findings revealed that over three quarters (77%) of independent financial advisers (IFAs) said compliance requirements were limiting time for financial planning. It also found that 69% said portfolio management tasks were taking priority, and that around half (49%) cited a lack of administrative support as a key constraint.

Rathbones, whose findings were based on a study among 100 IFAs, also said increasing regulatory demands were affecting the ability of advisers to manage portfolios effectively.

The vast majority (98%) said compliance and documentation requirements are already delaying timely portfolio adjustments, with 18% describing the impact as “significant”. Looking ahead, 91% of respondents are expecting the burden to increase over the next three years.

Investment director at Rathbones, Andrea Yung, said: “Advisers are under growing pressure from both regulatory requirements and time constraints. Many are spending more time on portfolio administration than on the strategic planning that advisers say truly adds value for clients.

“With 43% of advisers stating that their clients will place increased value on both financial planning and portfolio management over the next three to five years, the ability to offer the best of both worlds – tailored advice and high-quality investment solutions – is becoming essential.”

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