More than 7 in 10 financial advisers (71%) believe it is getting harder for smaller independent financial advice firms to survive, according to a new survey.

Consolidation is making it tougher for smaller advisers, according to the report from platform Nucleus.

The regulatory landscape was also impacting advisers this year, with 75% saying that staying on top of changing requirements was a challenge.

Firms said that changes in Government policy were the biggest challenge to their firms, with changes to regulation scoring third.

Andrew Tully, technical services director at Nucleus, said that advisers should see changing regulation as an opportunity rather than simply a challenge.

He said: “The FCA’s proposed targeted support regime is a positive step towards closing the planning and advice gap by making regulated guidance more accessible - especially for those dealing with pensions and investment decisions.

“It offers advisers a valuable opportunity to engage with underserved groups, demonstrate to people that advice may be an option to consider at the appropriate time, and promote greater financial inclusion. It’s crucial the Government and regulators continue to do more to highlight the benefits of taking regulated financial advice.”

One of the biggest challenges cited by the advisers surveyed was attracting younger clients.

Nearly 9 in 10 advisers (86%) said they believed that the profession needed to do more to appeal to younger clients, but under half said they were currently working with this demographic.

Advisers also had concerns about what their clients are exposed to online. Over half (59%) of those surveyed said they have seen clients negatively affected after following poor or unregulated financial tips online. Just 28% said they think finfluencers have a positive role to play in providing access to financial advice.

One in 10 advisers surveyed said they were currently using social media to connect with potential clients.

Hiring the right people was not a challenge for most of the advice firms surveyed. Over 4 in 5 (83%) of those surveyed said they were doing a good job of attracting and developing talent in house.

• Nucleus surveyed advisers between 29 May and 19 June.