In the latest FTAdviser video interview, Steve Murray, chief executive of 1825, answers critics who question why a provider would launch an advice arm.
It was back in February that Standard Life announced it would launch a national advice arm called 1825. The provider bought Skipton Building Society’s Pearson Jones advisory business and announced plans to build up a national firm of 150 advisers.
When asked by Investment Adviser’s Ellie Duncan was the move into advice just a bid to balance the books after annuity sales fell, Mr Murray responded: “No. This is a very progressive strategy for us.
“Everybody knows about the Retail Distribution Review and how that has changed the marketplace for advisers. We think this is a golden age for advice.
“We think the market is under capacity at the moment. As a result of that we believe there is a role that we can play to fill that capacity gap. That is why we have launched 1825 to go into this space.”
On the issue of accusations that 1825 advisers, who will be restricted, could be biased towards parent Standard Life, Mr Murray said: “We will have a very wide financial planning offering. We will be able to advise on legacy assets as well as new customer assets as they come through.
“We will have the appropriate governance structures and management information systems in place to ensure the right advice is given to customers.
“We are probably in a slightly different position to other people in that we are not big protection writers. We are not big annuity writers. We will have very wide panels that advisers will be able to select from. We will also have a central investment proposition that will draw on a wide range of funds from across the market.
“While my expectation is that Standard Life Investments will have some of their funds within it we will absolutely draw from the wider market as well.”
Addressing criticism that a provider should not give advice, Mr Murray said: “We believe as a responsible provider there is a role for us to play in filling the capacity crunch.”
On plans for building the business Mr Murray said 1825 would establish a number of regional hubs across the UK, with close proximity to “major wealth centres.” He said Pearson Jones was the first acquisition but that this deal was just “the first step.”
Mr Murray said 1825 would set up an adviser, paraplanner and support academy to try and bring new talent into the marketplace in the third quarter of this year.
emma.hughes@ft.com
