Less than half (46%) of advisers use social media, leading the Association of Professional Financial Advisers (APFA) to call for greater clarity on social media rules from the Financial Conduct Authority.
Of 225 financial advisers surveyed in a poll carried out by NMG Consulting for APFA, 21% said they considered social media as "important" for their business.
Chris Hannant, director general of APFA, said: "The proportion of advisers not using social media still outnumbers those that do, but the relatively high numbers using it as a channel for targeting new clients and speaking to existing customers does suggest it has a role to play."
The most common reason for using social media for those advisers on it was to keep up with general industry news with 48% using it for this.
Communication with clients was a reason for using social media for 40% of advisers, while 36% use it to target new clients.
Of those on social media 34% had no concerns over using social media, while 33% were unsure or concerned about FCA rules around social media.
The survey also found that 37% of advisers were not aware of the regulations around financial services on social media.
Hannant added:"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."
Last August, the FCA launched a consultation on social media guidance for advisers.
Following this consultation, APFA is urging the FCA to provide greater clarity on social media regulation.
Hannant concluded: "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. 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."
