Uncertainty over the Future of Financial Advice grandfathering rules is making financial advisers look at organic growth rather than merging with or acquiring practices.

A new survey by recruitment specialists The Dawson Partnership and Balance at Work says 65% of the advisers questioned said they would rely on organic growth to expand their businesses.

None of the advisers said they would buy a book of clients or buy another practice, and only 10% of those interviewed said they would employ another adviser to grow the business.

The survey spoke to independent financial advisers, with 72% having worked more than 10 years in the industry. Of those surveyed, 60% employ between one and five people.

The advisers say small business-owners are the best new client prospects. Some 68% of respondents want this demographic as the source of new clients – way ahead of high net worth individuals, the group favoured for many years.

Only 35% of advisers now want to attract the high net worth group as new clients. The second most popular demographic groups is middle-income families and retirees, both at 48%.

The least popular group is academics and teachers, with only 6% of the advisers surveyed saying they are chasing this demographic.

Client referrals are the most popular way of attracting new business, according to the survey, with 81% of advisers referring this method.

Prospecting for new clients is the least popular method, with only 23% of advisers saying they would use this channel.

The second most popular means of attracting clients is through “centres of influence”, with 71% of advisers saying they will use this method.