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By Marc Shoffman | Published Aug 01, 2012

IFAs must keep low-value clients

The trade body said that ditching clients just because they may not be profitable does not sit well with the concept of treating customers fairly.

A spokesman said some advisers may feel a “moral obligation” to look after these products.

She said: “The approach to dealing with low-value clients seems to be to create restricted propositions with a short list of approved product providers and a limited range of in-house funds. IFAs convinced of the value of independent advice to all types of client need to look at how they can service low-value clients with a low-cost service.”

The IFA Centre has suggested that firms could offer online and offline solutions to save on costs or link with external providers or other broker firms, so that you can offer new services such as home and motor insurance.

Andrew Reeves, director of Northamptonshire-based the Investment Coach, said: “We are definitely having to segment clients and are working on an online proposition. Whoever gets the online solution done in the most logical and coherent fashion will win a lot of business.”

Mr Reeves said there was a gap in the market for a referral service for less profitable clients.

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