As first revealed by FTAdviser in July, independent financial advice firm Plan Money has announced the launch of a non-advised service to accommodate clients who may lose access to full advice post-Retail Distribution Review.
With the introduction of adviser charging, advisers may no longer be able to afford offering full advice to lower-value clients and clients themselves may be reluctant to pay the accompanying fees, the firm said in a statement.
In anticipation of this, Peter Chadborn, IFA and co-director at Plan Money, revealed to FTAdviser in an exclusive interview earlier this year the firm plans to offer a non-advised option to clients.
Today, the company has announced the launch of Plan Direct, a partnership with Payingtoomuch.com, for a non-advised protection service. The partnership will also give clients access to motor, home, energy and travel insurance comparisons.
Mr Chadborn said: “It really has little to do with RDR, it is the engagement game which has changed. We want to enable clients to jump on and off the ‘advice train’ according to their preference and not force them through ‘regulatory hoops’ for what they perceive to be simple transactions.
“Rather than turn away low-value transactions or low-value clients, we will instead be able to direct them to our website and as such they are still engaging with us.
“Historically, most face-to-face advisers deem non-advice to be a step too far but we believe that to ignore consumers’ rapidly evolving buying habits is to be missing a trick. We envisage clients engaging with us on both levels.”
According to Mr Chadborn, it is unusual for small, regional IFA firms to offer automated, non-advised solutions.