Brewin Dolphin's CEO has said the company is not interested in buying up pricey technology to specifically target mass market clients with few assets.
The company’s chief executive David Nicol said the "cost effective" financial planning service Brewin Dolphin is trialing will be aimed at clients with fewer assets than its more traditional base, but that a minimum would still apply.
In its results for the first half of the year, Brewin Dolphin said it has begun to explore the development of a new advice or planning service aimed at providing a cost effective way for clients with less complex needs.
Mr Nicol said: “The assumption is clients need some advice so can we give some limited telephone-based advice around a certain restricted area.
“This tends to be for clients with less than £150,000 because that is the cut off point for our full service.”
Addressing whether Brewin Dolphin would be investing in technology to provide this service, Mr Nicol said: “Clearly if you wanted to really grow a lower end service we would have to build or buy some technology solutions but we are not about to do that.
“We are way away from that.”
In the six months to the end of March, Brewin Dolphin increased its funds under management to £37.8bn – an increase of 6.8 per cent.
It posted profits before tax up by 32 per cent to £28.4m.
Brewin Dolphin also saw growth in its intermediary service, such as its managed portfolio services, and in the number of inflows receiving financial planning advice.
Mr Nicol said the company was keen to grow its financial planning arm but it is not currently Brewin Dolphin’s intention to do so by acquisition.
He said: “It is hard to find really strong talent which is well qualified. We are going to start an academy.”
The first cohort in the new academy will start their two-year course in the summer.
damian.fantato@ft.com
