Three ideas to generate new business from existing clients

The last few years have involved significant changes for us all.

The scale of these adaptations means that many people are going to rely on longstanding relationships in order to support them throughout this transitional period. As a result, many advisers are beginning to see that existing clients are creating the majority of new business.

A common concept for many financial advisers, The Pareto Principle (also known as the 80/20 Rule) proposes that roughly 80% of results come from 20% of causes. This concept is a daily reality for most advisers who gain the majority of their business from roughly 20% of their clients.

This idea is likely to further increase in significance as advisers rely more heavily on pre-existing relationships in order to reinvigorate their business.

As generating new business from existing clients continues to grow in value, we have highlighted some of the most effective strategies to help re-energise business from your existing client base.

Help clients divide up assets for multiple beneficiaries

Clients are often not just looking to protect their legacy. Many want to ensure that their beneficiaries have strategies in place to make best use of it.

According to research by Openwork, 63% of parents and grandparents want some form of influence over how their beneficiaries spend their inheritance. For example, a quarter of those questioned want to ensure that their grandchildren benefit from their assets.

This desire to have a say on the long-term impact of their legacy means that many clients want more control in the later life planning process.

An investment in Business Relief qualifying assets can give your clients this control by allowing them to earmark assets for each beneficiary.

On investment, a trading company for each investor can be established with 100% of the share capital issued directly to them. Each investor can set up multiple trading companies. Each of these can be associated with a different beneficiary. As a result, each company can then be easily passed on to the respective person.

This offers your clients control over their estate. Multiple beneficiaries are considered individually whilst still protecting the client’s legacy from Inheritance Tax.

If you would like to find out more about setting up personal trading companies, click here.

Make use of legislation that clients are often unaware of

The Additional Permitted Subscription (APS) is largely unknown but widely available. It is a highly beneficial allowance for surviving spouses or civil partners of ISA investors.

This legislation grants ISA holders the ability to pass the entire value of their ISA to their partner after death. The APS works in the form of a one-off increased ISA allowance. This is on top of their own £20,000 annual ISA subscription.

With nearly £70 billion being sheltered by ISA investors, there is still a general lack of awareness of the APS. This creates a great opportunity for advisers to write new business by touching base with their existing clients that are either confused by the APS allowance or have yet to seek proper financial advice around this area.

If you would like to find out more about the APS and how it could work for your clients, click here.

Utilise technology to involve beneficiaries from the start

By adopting video calls and online paperwork, advisers now have the experience and confidence to run meetings virtually.

Utilising this technology allows the next generation to be involved from the earliest opportunity regardless of their location. This in turn means that a wider family financial plan can evolve from day one. As a result, every beneficiary can feel like they are an important part of the process.

Building this connection not only helps improve trust levels between advisers and beneficiaries. It also increases the likelihood that these people will become directs clients of the future.

Existing clients also have added peace of mind. This strategy gives them the security to know the people they care about most are being taken care. These beneficiaries will also have the knowledge to utilise their inheritance in the best way possible.

To find out how you can deliver better outcomes for clients and realise the growth opportunities for your business, click here.

Working with Stellar to generate new business from existing clients

To learn more about mitigating inheritance tax and how you can generate a variety of new business from existing clients, please contact a member of the team on 020 3195 3500 or contact


Written by Jack Dobinson


Important Information

Stellar Asset Management Limited does not offer investment or tax advice or make recommendations regarding investments. Prospective investors should ensure that they read the brochure and fully understand the risk factors before making any investment decision. The value of investments and the income from them may fall as well as rise and is not guaranteed. No assurance or guarantee is given that any targeted returns will be achieved. Forecasts of potential future results are not a reliable indicator of actual future results.

Stellar Asset Management Limited of 20 Chapel Street, Liverpool, L3 9AG is authorised and regulated by the Financial Conduct Authority.