Advisers should consider providing an online, non-advised service to avoid losing otherwise non-profitable or low-value clients after the Retail Distribution Review, independent financial adviser Peter Chadborn has said.
In an interview with FTAdviser as part of a series looking at adviser’s post-RDR plans, to be published later today, Mr Chadborn, co-director of Plan Money, revealed his company will be introducing an online-only option for clients and may even venture into the general insurance market.
This would allow the company to keep clients on a non-advised basis who would otherwise no longer be worthwhile.
Mr Chadborn said: “General insurance is so far off the radar for most IFAs but we didn’t want to say no to anybody.”
Although his company will focus primarily on keeping existing clients rather than pulling in new business, Mr Chadborn believes people are increasingly looking for a “one-stop shop” and would therefore be open to buying general insurance products from their financial advisers.
“Gone are the days when an IFA can say this is the area I operate in and if you don’t fit that then be on your way.
“For us it’s more a case of saying, ‘how do you want to do business with us’ instead of forcing busines down a particular channel.
“The thinking of wanting an online solution to complement the offline, face to face solution led us to think ‘why stop there, why not partner with someone for general insurance?’.”