Rise in people seeking wealth management services

Rise in people seeking wealth management services

The number of people seeking professional wealth management services for the first time on has hit an all time high, Lee Goggin, co-founder of the portal, has said.

He said: “It seems safe to say that DIY investing is starting to look less appealing to affluent investors as macroeconomic and geopolitical threats to their portfolios continue. The pension reforms also seem to be focusing investors’ minds.”

The free online tool, which matches investors and wealth managers, revealed that 75 per cent of users sought wealth management services for the first time, against a historical average of around 66 per cent and rise from 57 per cent seen in the second quarter of 2014.

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Findings also revealed that execution-only services continued to plummet as 9 per cent of male users looked for execution-only investment services, and only 3 per cent of females.

A growing number of females used the service also, the findings revealed, with nine out of 10 women looking for discretionary investment management services while 50 per cent more female users sought a small wealth manager, as opposed to a large one.

Mr Goggin said: “We were particularly pleased to see more female users coming to the site to see what proper wealth management could help them achieve.”

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Paul Coffin, wealth manager at London-based Capital Financial Markets, said: “The reasons are two fold. Firstly because of the opening up of the Sipp market, and with execution only services, which is just for custody of stock, going up in price people are saying that they might as well pay more and get advice.

“The other reason is because they want someone to hold their hand and explain, there is a mass of information and options available following the opening up of the pension market.”