Aviva is working on a project to roll out “focused advice” services to its platform that advisers could use when working with clients that cannot afford full advice, FTAdviser can reveal.
Phil Ralli, head of platform proposition at the firm, said the firm was looking at ‘focused advice’, in other words a simplified or restricted proposition, as well as a non-advised option, which could be delivered through the platform in conjunction with advisers.
He described the service as “B2B2C” and, while he admitted the firm does not “have any detail yet”, he said it was something it had not “seen any other platforms talking about doing.
The new project is being designed partly in a bid to help advisers who are facing the challenge of switching clients from commission to fee-based advice, following a sunset clause which will come into effect in April 2016 and end most trail commission paid on platform investments.
Mr Ralli noted that there has been some reticence amongst the industry in switching legacy business to a new charging structure to comply with the incoming rules, due to fears of many advisers that they will lose business.
He told FTAdviser: “One of the trends that we are seeing is advisers looking at how they continue to deal with clients that aren’t right for or aren’t able to afford full advice.
“Lots of advisory firms are looking at how they might be able to offer focused advice, or how they might be able to offer some of their services in a non-advised way.
“We think one of the emerging trends is platforms working with the Financial Conduct Authority and advisers to help them build solutions that will work in that sort of area of advice.
Mr Ralli said of the new proposition: “We are looking at how we can support advisers in that area [the restricted and non-advised areas].
“We are going to be talking to advisers and to the FCA about how we could usefully structure services in that area that would work - and most importantly how we could talk to advisers about how those services work and make them confident that they are going to be something that helps them from a compliance perspective.”
Mr Ralli said that ultimately he expects there to be new propositions coming onto the platform as a result of the discussions with the FCA and advisers.
“It is very much early days yet so we don’t have any detail that we can talk around yet on what those services will look like. They will emerge probably over the course of the first half of next year.
“I think they are not really sure about the regulatory environment in that area, so I think its something where advisers need a bit more help and guidance and confidence in.”
