French independent wealth management advisors saw a 58 per cent surge in new clients in 2009, according to the latest edition of a wealth management advisory market survey by Cardif, BNP Paribas’ insurance unit, although the report notes changes in client profile and expectations.

In the wake of the financial crisis, advisory service users have become younger and more entrepreneurial, with the majority self-employed and more than 40 per cent under the age of 50, according to the report. Advisors polled said these clients are cautious when choosing their advisory company and generally have a higher degree of involvement in managing their assets. They have long-term goals, with 60 per cent claiming retirement security as an important objective.

Additionally, clients are much more cost-aware, wanting more information and pro-activity from advisors, although they are not always ready to pay for such services, confirmed by the fact that 71 per cent of advisors surveyed noticed major changes in the expectations of clients.

Respondents noticed that clients are worried about diversifying their wealth as well as its management. In regards to advice, 85 per cent noted that quality, availability and stability were the chief concerns for clients. Worries about security were chiefly related to long-term goals and protection, with company stability, financial range and tax featuring prominently. A significant 76 per cent of advisors state that their clients are reverting to simple products with 82 per cent stating that “understanding” the product was important.

One option in adapting to clients’ increasing cost-awareness is by augmenting fees, and evolving the business model to accommodate this change in the medium term, according to Roger Mainguy, a director of Cardif in France.

However, implementing higher fees will be a challenge as 53 per cent of advisors have found clients to be more sensitive to this idea.

This survey, of 501 independent wealth management advisor firms, was held in conjunction with TNS Sofres from 26 May to 22 June 2010. Cardif is present in 20 cities in France.