Tilney Bestinvest is launching a ‘one-off advice’ service, designed to meet the needs of clients who just need help on a lump sum or investment portfolio.
The service will be available to new clients and to existing users of the group’s non-advised Online Investment Service at a fee of 1 per cent of the value of assets, with a minimum charge of £500 and a maximum fee-cap of £5,000.
Users will go through the same process as those receiving ongoing investment advice, which involves in-depth fact finding and risk profiling exercises designed to identify an investor’s aims and risk-appetite.
The firm noted if, following that review, an investor’s situation is deemed to require ongoing advice, they will be recommended to its full investment advisory service, and should they choose to opt-in, the 1 per cent upfront fee will be waived.
Lee Dooley, managing director at Tilney Bestinvest, explained his business has always stressed the important role professional advice plays in helping clients to better-understand their options.
He said: “But we have also recognised that, until now, some investors viewed advice as either out of their reach, or an ongoing commitment to which they could not quite stretch.
“We have introduced the one-off advice service to ensure more people than ever before can take advantage of our advice, without having to pay for an ongoing service they might not require at the time.”
Graeme Mitchell, managing director at Galashiels-based Lowland Financial, said Tilney Bestinvest’s new idea is strikingly similar to his firm’s scale fee for one-off advice.
Mr Mitchell said: “We then offer (and generally recommend) ongoing reviews as things change – be it funds, legislation, personal circumstances.
“I’d be wary of one-off investment selection with no follow-up, but if a client is prepared to take the risk – they can go it alone with us too.
“Reviews are frequently where the best value is delivered from advice. I use the mantra of ‘marginal gains’ – we add value to financial plans over time by making a series of small improvements over time, which together add up to something more tangible – and these opportunities are lost to clients who opt for one-off advice.”