IFAs are feeling positive about the future, with 54% reporting an increase in revenue in the first quarter of the year, according to new research.
Aviva's latest Hot Issues Tracker also found 66% expect to see another increase over the next three months.
The research, which examines how IFAs look to build their business's in 2011 and beyond, found just 15% of IFAs had seen a fall in revenue over the last three months, compared to 54% who had seen an increase in revenues and 25% who'd seen revenue increases of more than 10%.
As a result, only 6% of IFAs are predicting a fall in revenues in the second quarter of the year.
This was a positive change compared to six months ago when 20% reported seeing a decline in revenues compared to 42% who had seen an increase and 17% who had seen increases of more than 10%.
Aviva said this outlook was due to the standing of IFAs among consumers. Asked how consumers currently perceive the value of independent advice, 61% of IFAs said that in their experience the public viewed advice positively, with just 19% reporting a negative impression.
However, improving confidence among IFAs is tempered by the fact that 41% feel the current economic environment is affecting their business negatively; compared to 31% who feel it is having a positive effect.
Dean Lamble, director of distribution development at Aviva, said: "Demand for products - especially investments - was strong in the first quarter of the year and crucially IFAs are reporting that clients value their skills and the work they put in to deliver the best service for them.
In terms of products, Aviva reported a surge in interest for investments, with 41% of advisers saying this is the area where they've seen most demand, ahead of pensions (25%) and mortgages (14%).
Products by demand
Investments 41%
Pensions 25%
Mortgages 14%
Annuities 9%
General insurance 5%
Tax 3%
Savings 2%
Healthcare 1%
Source: Aviva
