New research from the Association of Professional Financial Advisors (APFA) showed that only 46 per cent of advisors that were asked use social media in a professional capacity, with only 21 per cent considering the medium important for their business

Of those who do use social media, 48 per cent use it to keep up with industry news. 40 per cent use it to communicate with clients, while 36 per cent use it to source new business.

Chris Hannant, Director General of APFA, felt that although the majority still don’t use social media for business, the survey proved that social media does have 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 adviser through channels like LinkedIn or Twitter – rather than forced upon clients who may not want it,” Chris said.

33 per cent of respondents who claimed to use social media for work expressed concerns about FCA rules regarding usage. 37 per cent said they were unaware of regulations around social media and financial services.

“With so many financial advisers still unsure or unaware of the rules and regulations around social media use, further clarity is needed from the FCA,” Chris added.

“The recent consultation on the issue was a good first step and should help advisers become more comfortable using social media, providing the resulting guidance is clear.”