FSI Member Poll: Independent Advisors See Opportunity—and Risks—Ahead

Independent financial advisors are optimistic about the coming year, but they also know there are reasons to stay cautious. 

The latest FSI member survey shows that financial advisors feel positive about the economy and markets, but they are still watching for risks that could affect their outlook. They are especially concerned about issues like geopolitical conflict, fiscal policy, political uncertainty, and regulatory pressure. At the same time, they see attracting clients, finding new talent, and handling higher compliance and technology costs as major challenges to growth. 

The survey, conducted in August with 189 respondents, shows that the industry feels confident about the future, but also recognizes the challenges ahead. In summary, FSI’s financial advisor members see both opportunities and uncertainties right now.

Cautiously bullish 

Most respondents have a positive outlook on the U.S. economy, with more than 67% indicating that they are either very or somewhat optimistic about the next 12 months. About 65% said they are somewhat or very bullish on financial markets. 

That optimism also shows up in how respondents see investment opportunities. More than 46% identified broader market participation as the greatest investment opportunity over the next 12 months. This was well ahead of continued gains in U.S. equities, which 22% listed as the greatest opportunity. 

Client behavior also suggests that uncertainty has not driven a broad retreat from the markets. About one-third of respondents reported that clients are maintaining their current strategies, while 25% are seeking greater diversification or new opportunities and nearly 9% are investing more aggressively or putting additional cash to work. 

Combined, those responses represent nearly 66% of the total, compared with about 22% who reported more cautious investing, higher cash allocations or delayed financial decisions. That nearly three-to-one difference suggests clients are largely responding to uncertainty by recalibrating their portfolios rather than stepping away from the markets. 

Inflation and the cost of living are top concerns 

Higher prices cut across the survey’s economic and political findings. Nearly three-quarters of respondents (72% or more) said inflation and the cost of living will have the greatest influence on the 2026 midterm elections. Foreign policy and national security ranked a distant second at nearly 9%, followed by economic growth and employment at about 8%. 

The concern extends to the financial markets. More than 15% of respondents identified persistent inflation as the greatest market risk over the next 12 months. 

Market risks include geopolitical conflict, fiscal policy, and regulatory uncertainty 

Though respondents remain bullish overall on the economy and financial markets, they also recognize that several external developments could disrupt that outlook. 

More than 26% cited geopolitical conflict as the leading market risk. Federal debt and fiscal policy followed at nearly 20%, while rising prices ranked third at more than 15%. 

Political or regulatory uncertainty followed at around 14%, with slower economic growth or recession cited by about 10%. 

Independent contractor status and reducing regulatory burdens are priorities 

For FSI members, some of the most pressing policy concerns are closer to home. Preserving the independent model and limiting regulatory friction ranked among their leading priorities for the independent financial services industry. 

When asked which policy or regulatory issue should receive the greatest attention, protecting independent contractor status was the clear frontrunner, cited by nearly 42% of respondents. About 24% identified reducing unnecessary compliance and regulatory burdens as their top priority, while approximately 18% selected preserving investor choice and access to financial advice.

Attracting clients and talent is a major challenge 

The survey also reveals that independent firms face fundamental challenges as they seek to grow. 

Attracting new clients was the most frequently cited obstacle, with nearly 22% of respondents choosing it as their top roadblock to growth. Recruiting and developing advisors came in second at just over 19%. 

Market and economic uncertainty followed closely at about 18%, while increasing compliance costs and technology expenses and integration were cited by about 14% and 13%, respectively. Almost 10% of respondents chose succession planning as their top challenge.

Taken together, the results offer a clear picture of FSI’s financial advisor members entering the year ahead with confidence, tempered by a realistic understanding of the risks around them.  

They see opportunities in the economy and markets, but they also recognize that future growth will depend on their ability to attract clients and talent, manage rising costs and protect the independent model that supports their businesses.