Most advisors and investors are optimistic for 2010 and more than half have re-entered the markets, according to an SEI Quick Poll.

Echoing recent surveys, the poll found that risk and its avoidance is now the predominant theme as investors intend to use tried-and-true investment approaches, such as diversification and dollar-cost averaging to meet financial goals.

Surveys recently by Spectrem Group and other organisations showed that wealthy investors have become more conservative about risk, although there may be signs that since the market rally started in the spring of last year, some of the caution may have begun to lift.

Meanwhile, as part of a response to increased regulation and business risk, a majority of advisors plan to make changes to their processes and procedures for 2010. The poll, conducted by the SEI Advisor Network, surveyed 442 advisors during December 2009 and January 2010.

"This poll shows the true impact of the financial crisis that started in 2008 - advisors are looking for new ways to make their business more secure and more successful," said Stephen Onofrio, head of sales and service, SEI Advisor Network. "Advisors that identify and implement best-practices in processes, procedures and technology will win the race for investor confidence and grow assets."

More than half (59 per cent) of advisors said the most challenging part to 2009 was the "continued pay cut due to market depreciation." Nearly one-third (29 per cent) said scaling back expansion plans was the hardest part.

While advisors focus on business risk, risk mitigation is a key theme with investors. Nearly half of advisors (45 per cent) said clients are "not as risk tolerant as originally thought." Almost one-third (29 per cent) said clients learned they "can handle market volatility if they focus on long-term goals." Most advisors (68 per cent) said they communicated with clients more frequently in 2009.