Despite much buzz around the importance and benefits of using social media, a survey of UK wealth advisors suggests many in the sector don't yet buy into it.

A survey of UK financial advisors shows that just under half (46 per cent) of them are using social media as part of their jobs, while only 21 per cent consider using such channels as important for their business, suggesting the industry has some way to go in embracing this technology. Advisors are also unclear about how regulators regard use of these channels.

The survey from the Association of Professional Financial Advisers was carried out among 225 financial advisors.

Among those advisors who do use social media, 48 per cent employ it to keep up to date with general industry news, 40 per cent do so to communicate with existing clients and 36 per cent do so to target new ones.

While there is a great deal of commentary and industry buzz around social media and other trends, such survey evidence suggests that a significant proportion of the wealth management sector in the UK is reluctant to embrace it and may have concerns about how regulators such as the Financial Conduct Authority will treat its use.

“The proportion of advisors not using social media still outnumbers those that do, but the relatively high numbers using it as a channel for targeting new clients and speaking to existing customers does suggest it has a role to play. It is important that social media use is client-driven – for example, if there is a demand from clients to receive information from their advisor through channels like LinkedIn or Twitter – rather than forced upon clients who may not want it,” Chris Hannant, director general of APFA, said.

While a third (34 per cent) of advisors have no concerns over using social media, a further third (33 per cent) are unsure or concerned about Financial Conduct Authority rules around social media use.

Worryingly, 37 per cent of advisors said they were not aware of the regulations around financial services and social media.