An Institute of Financial Planning member is about to launch a ‘non-advised’ charitable investment service in the UK that could help financial advisers as they prepare themselves for life after the Retail Distribution Review.
Set up by IFP member Mike Stafford, Investaid will allow DIY investors to donate to charity whilst benefiting from investment in the top brands and leading fund managers on the Cofunds platform at discounted prices.
Financial advisers are urged to refer those people with small pots of money to the Investaid website, whereby the charity community can benefit from the rebated commissions.
Another feature of Investaid is that financial advisers may be able to get further involved in the venture by taking a stake in it without falling foul of the regulator’s rules on ‘controllers’.
Mr Stafford said: “There has been much speculation about how the land will lie post-RDR in terms of how services will be transacted, with the general consensus suggesting that online ‘non-advised’ transactions will gather pace among those earning less than £50,000 per year, according to JP Morgan research. In addition, small firms may find it uneconomical to provide advisory services to people with small pots of money.
“However, it begs the question of how many small firms are prepared to meet the costs of providing a ‘non-advised’ service. Those who have decided against the expense could find Investaid useful to fill the gap.”
Colette Cook, financial adviser at Gem & Co Financial Services, said: “Investaid is a win, win, win proposition - a win for the advisers post RDR, a win for the customers and a win for the charities.”
