Robo-adviser Nutmeg has launched an unregulated 'financial planning' service which will be available to consumers at half the cost of its regulated advice service.
In a statement on the company's website yesterday (September 23) Lisa Caplan, head of financial advice at Nutmeg, said the service was being introduced following evidence many consumers simply want "a straightforward view" of their financial position, and not regulated advice.
Ms Caplan said a "simple explanation" of why contributing to a pension may be right for a client, or how much extra to save each month, can make "all the difference between living the life you want in retirement, or not".
It follows the launch Nutmeg's financial advice pilot in November last year, which came to market after almost three years in the making.
Ms Caplan said: "So we’ve decided to offer a distinct planning service alongside our comprehensive financial advice offering.
"Since the planning service is all about giving you guidance, rather than regulated financial advice, it’s less costly for us, and I am glad to say we can offer it to you at a lower cost than we currently charge for full financial advice."
According to Nutmeg's website clients will be able to build a plan with a financial coach for £275 inclusive of VAT, compared to comprehensive financial advice available with the company for £575 inclusive of VAT.
The financial planning service is marketed on Nutmeg's website as personalised guidance, and not financial advice.
Ms Caplan said: "If you use our planning service, you’ll feel able to make better-informed investment decisions. You may feel that’s all you need.
"That said, we’re still huge advocates of fully regulated financial advice. It’s the only way to get in-depth, specific support that’s tailored to every aspect of your financial situation.
"So If you’ve already benefited from the planning service, and you do decide you want to take up comprehensive financial advice, you’ll only have to pay the difference between the two services. You’ll never have to pay for planning twice."
The company first revealed its plans to enter the advice market in 2015, with founder and then-chief executive Nick Hungerford saying this was the next logical step for the business.
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