Just launches referral service for non-core clients

Just launches referral service for non-core clients

Retirement specialist the Just Group has launched an adviser referral solution for clients who do not fit an adviser's core business model.

Hub Referral Solutions offers advice in three specialist areas: retirement income, care funding and equity release.

It said the service would suit those who need specialist advice in areas their adviser doesn't operate in or find themselves priced out by their adviser.

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The service offers advisers an introducer fee and allows them to maintain ownership of the individual relationship should they choose to.

Stephen Lowe, group communications director at Just, said: "Advisers often come across prospective clients who are like a square peg in a round hole – they don’t neatly fit into the firm’s business model.

"That could be because it won’t be cost-effective to advise the individual, or the advice is in a specialist area they don’t cover or perhaps even because they are simply too busy serving existing clients."

He said Just's research found 26 per cent of prospective clients, who approached advisers for retirement income advice in the last 12 months, did not fit the firm’s business model.

Yet 79 per cent of advisers admitted taking on a client they knew would not be cost-effective.

"Hub Referral Solutions ensures those people will receive high quality advice or guidance, depending on their needs. The adviser benefits from earning an introducer fee while not being distracted from their core business," Mr Lowe said.

Hub Referral Solutions is provided by Hub Financial Solutions, which is one of Just Group's companies and was formed in July last year by merging Just Retirement Solutions (JRS) and The Open Market Annuity Service.

It has so far advised on retirement income, care funding and equity release, but this is the first time the wider adviser community has been able to refer people directly to a combined service covering all three.

The news was welcomed by Aj Somal, chartered financial planner for Birmingham-based Aurora Financial Planning, who said: "This is an interesting development, and could see specific queries go to specific advisers.  

"Specialisms are becoming the norm, and it is increasingly rare to see an adviser offer advice across all areas of retirement income, care funding and equity release.

"If it means people get advice when previously the cost of this would have been prohibitive to them, then that could only be a good thing."