Ascentric is piloting a scheme with advisers who want to maintain a relationship with lower-end clients who might be tempted to do it themselves post-RDR, Hugo Thorman has said.
The managing director of Ascentric said that, as the fee rate has been pushed up post-RDR, more advisers were looking for different ways to service lower-end clients without losing the relationship.
Mr Thorman said as a result, Ascentric was working on a pilot scheme for Investor Direct – a service that allows investors to manage their own investments simply and cheaply online.
This is being piloted with some adviser-users of the Ascentric wrap, to see how useful this might be for those clients who do not wish to pay an adviser charge or ongoing service fee, but who would still remain on the client book of the adviser so that, as and when their financial needs change, the adviser can provide tailored advice.
Mr Thorman added: “To save their income streams, advisers need to engage more with their clients – but what if the client cannot, or will not, pay an ongoing fee? Even when advisers use platforms, it is essential that there is support available for clients when they need it.
“This is why we are piloting Investor Direct, enabling an investor to manage basic accounts held on Ascentric, such as shares, funds, self-invested personal pensions, Isas and group investment accounts, but white-labelling this through the advisers’ own websites.”
He added: “If an investor thinks they can do it themselves, they will. If they just don’t have enough funds to pay an adviser charge they might just go down a DIY route. Investor Direct aims to make a difference by keeping the client-adviser relationship so that when the client’s financial circumstances change, the adviser can step in.”
Howard Scott, chartered financial planner for Bolton-based HJ Scott, said: “If clients are not economically viable, then what value is an adviser-led platform anyway? Any watered-down service is a regulatory risk in the making. Give clients 100 per cent service or do nothing.”
