The rising costs of operating a financial advice practice has been ranked as the number one challenge for advisers today, outpacing administrative and compliance burdens.

According to CoreData, over one-quarter (26 per cent) of advisers have identified growing business costs as their top concern at the moment.

This figure is over double what it was one year ago, when it stood at just over 10 per cent of advisers. The finding echoes previous BT research which uncovered that cost base increases and pressure on profitability is impacting 91 per cent of advisers.

Worries related to administration and compliance burden, which used to be the top concern at approximately 20 per cent of advisers one year ago, has fallen to 18 per cent in 2024.

“The latest insights reveal a dramatic shift in priorities among financial advisers, with rising business costs now overtaking traditional concerns around administration and compliance,” CoreData said.