Investor appetite to crypto is growing, yet independent professional financial advice for it is lacking, according to research.
A Genuine Lack of Knowledge
The study from social trading and crypto platform eToro, was conducted by Opinium, a market research company, among 206 advisers and 2,003 U.K. adults in September.
According to the data, 38 per cent of investors who seek financial advice regarding pensions would also seek financial help on crypto. Notably, though, 62 per cent of advisers admitted lacking the confidence to provide this information, reports the FT Adviser.
When it came to being questioned about cryptocurrency, 63 per cent of financial advisers indicated that clients had reached out to them. Yet, only nine per cent said they were confident in delivering this advice.
Speaking on the matter, Iqbal V Gandham, U.K. managing director at eToro, said:
“Investors clearly want help when it comes to cryptoassets and are looking to their adviser for the answers. However, whether due to concerns around long-term viability or a genuine lack of knowledge, [independent financial advisers] are shying away from these conversations.”
Gandham added that with the topic of regulation becoming more of a reality, there will be more interest in the sector. With a rise in the number of clients asking about cryptocurrency, financial advisers are going to have to think about getting up to speed.
Dan Farrow, director of SBN Wealth Management, said that while he wouldn’t “shy away from generic advice,” he would “not give any formal specific advice because it would jeopardise my business,” adding:
“Cryptocurrencies have got fraud potential all over them and advisers should not be touching them with a barge pole.”
Accountancy Firms Rush In
However, while financial advisers remain weary of providing advice on the industry, accountancy firms are doing their best to deliver.
At the end of October, it was reported that Big Four professional services, namely EY, PwC, and KPMG, were hiring blockchain specialists to deliver auditing services of crypto firms. At the time, Jeanne Boillet, a spokesperson for EY, stated that it was a “no brainer,” adding:
“We have no choice than to address this because some of our clients have invested in that space.”
Featured image from Shutterstock.
