A majority 93% of independent financial advisers (IFAs) would cite the speed of inheritance tax (IHT) mitigation as the most important factor when advising on estate planning, new research from Ingenious has indicated.

According to the findings from Ingenious, IFAs stated that having confidence that any IHT would be fully mitigated was the most appealing factor when selecting a business relief (BR) service.

This was followed by factors such as the level of investment risk, level of investment return and costs. 

The estate planning firm said that the market for BR-qualifying services has traditionally been “homogeneous”, with financial planning success contingent upon investors surviving two years unless an investor pays for additional insurance cover – which could be as much as 13% of the capital invested.

Ingenious also highlighted that Consumer Duty has brought a renewed focus on good outcomes, however. Based on its research of 97 IFAs in October, over half (55%) believe the biggest challenge facing their business in the future is keeping up with regulatory changes, such as the FCA’s Consumer Duty.

The research also indicated that in order to align with the regulator’s new rules, two in three (66%) IFAs believe their own research and due diligence processes will need to change to demonstrate how “good outcomes” for retail clients will be achieved.

Coupled with the finding that three quarters (74%) of advisory firms surveyed use third party research firms to create BR panels of suitable investment managers, Ingenious said this suggests that the way in which advisers work with third party research firms to create such panels also needs to change, as part of an “industry-wide reset” to deliver good client outcomes.

“The new Consumer Duty rules are a catalyst for change and improvement across the whole investment industry,” commented CEO at Ingenious, Neil Forster. “Regardless of your role in the industry, we all have an obligation to deliver good client outcomes.

“Our adviser survey clearly emphasises the need for estate planning solutions to evolve. We are proud to have worked closely with advisers to create a new service that meets their most pressing requirement, delivering BR effectiveness from day one and for no extra charge. We believe this to be an excellent client outcome.”

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