76% of financial advisers in Britain would support the regulation of cryptoassets, according to research from investment platform eToro.
The company surveyed 206 independent financial advisers and 2,003 Brits. Out of those advisers who support regulation, 80% believe it would prevent fraud, 73% say it would increase transparency, and 66% suggest that it would stop people losing money on cryptoassets. When it comes to conversations with clients, 15% state that regulation would allow them to provide advice on how to start investing.
Iqbal V. Gandham, UK Managing Director at eToro, comments: “We have long been advocates of appropriate regulation. Designed properly it would provide safety to the consumer and legitimacy to the industry long-term. It’s good to see support among the IFA community. As a regulated entity, we hope to work in partnership with IFAs to educate investors about the potential offered by cryptoassets as part of a diversified investment portfolio.”
Mind the gap
The research also highlights a significant gap between client appetite on crypto investing and the financial advisory community’s ability to provide advice on the subject. 38% of investors who currently seek financial advice about pensions and investments would also go to an IFA for advice on cryptocurrencies.
63% of financial advisers also say they have been asked about crypto by clients. However, only 9% feel highly confident providing guidance or recommendations on these investments. 62% admit a total lack of confidence on the subject.
Gandham adds: “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, IFAs are shying away from these conversations.”
“The question is how long can advisers avoid this topic given the growing awareness of and interest in crypto. With regulation for crypto on the horizon in the UK, we believe that advisers are only going to see an increase in client inquiries about the best routes to invest.”
Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.