Of the advisers that have received family referrals from clients, 91% said it was for their children, followed by 81% who said it was for spouses and/or partners, 68% for parents, and 63% for siblings.
More than a third (37%) said referrals had been to grandparents; while a similar number (36%) said it was with regards to grandchildren.
The main reasons for family referrals was providing continuity (cited by 90% of advisers).
Other key reasons were the new pension freedoms provisions around inherited assets and the ability to provide inheritance tax planning.
Overall, financial advisers reported that existing clients recommending their firm to other members of their family on average accounted for 22% of all new business referrals.
One-in-10 firms (10%) stated that family referrals account for more than 50% of new business.
In total, the vast majority (97%) of financial advisers surveyed by Investec Wealth & Investment said existing clients had referred family members to their firms.
Mark Stevens, head of intermediary services, Investec Wealth & Investment, said: “At a time when legislation such as the pension freedoms reforms are expediting the need for effective cross-generational financial planning and investment management, our research shows just how important clients with family members are to financial advisers, particularly with regards to spouses and children.
“There is a clear and natural demand for this continuity but this study underscores just how focused advisers need to be with regards to this key client base.
“It is important that intermediaries work with investment partners that understand and appreciate the significance that inter-family investment and financial planning plays with regards to their clients and, therefore, the success of their businesses,” Stevens said.
