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One in four IFAs won’t touch clients with less than £30k

One in four IFAs won’t touch clients with less than £30k

An Intelliflo poll of advisers has shown just how much cash an investor must have for them to be willing to advise them.

The adviser management software provider spoke to 203 users of its Intelligent Office system in January, finding that 41 per cent welcome the Financial Advice Market Review, which is looking at ways to bring advice back to the market.

A third would be prepared to adapt their business model to provide investment services to people with relatively low amounts to invest, while 44 per cent were open to adapting their business model depending on the outcome of the review and 22 per cent would not be prepared to adapt.

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But almost a quarter did not believe there was anything the Government or the regulator could do to encourage them to work with clients who had less than £30,000 to invest.

A total of 43 per cent said they would welcome a relaxation in regulations that would make it more profitable to offer advice to those with less than £30,000.

More than half said they would accept clients with less than £50,000 available for investment, with more than a third saying they had no minimum requirement.

However, 44 per cent required a minimum of £50,000 and 15 per cent required in excess of £100,000 as a minimum amount.

Adviser view

Mel Kenny, a chartered financial planner with London-based Radcliffe & Newlands, said advising those with less to invest is far from straightforward.

He said: “It is not simply a case of having a £50,000 minimum investment in order to make it worthwhile for the banks.

“Complexities such as the need for extensive knowledge of the benefits system through to the limited client capacity for things to go wrong makes it quite a specialist field – certainly far too specialist for the banks, as they have realised.”

peter.walker@ft.com