Advised clients keeping secret investing ‘side-hustles’

Related Topics

Advised clients are investing in ‘side-hustle’ accounts, alongside their main portfolio through their financial planner, research from Boring Money shows.

The figures, from a survey of more than 6,500 UK adults conducted earlier this year, show that 19 per cent of advised clients also hold an account with one of the top five DIY investing platforms.
A small minority even hold positions in speculative and illiquid assets. The research found that 9 per cent of investors using a financial adviser also hold some cryptocurrency assets, while 4 per cent said they had a peer-to-peer or crowdfunding platform account.
The findings suggest that a significant minority of advised clients are holding self-managed assets outside the scope of their relationship with their adviser.
These investors with a ‘side-hustle’ in DIY investing use the account to experiment in speculative assets, trade shares and dabble in riskier assets alongside their advised portfolio, says Boring Money research manager, Jessica Galletley:
“A significant minority of advised investors seem to want the comfort of knowing their core portfolio is overseen by a qualified financial professional, while also running a pot of money themselves as an investing side-hustle.
“Our findings indicate that advisers still retain remarkably high customer satisfaction rates, and we think that in most cases clients are just indulging in some investments they can experiment with outside the scope of the advised relationship.
“Nonetheless, it is important that the financial planning industry is alert to the fact some clients are dabbling in other assets, and will have a foot in both camps – advised and DIY investing.”

Author Profile