Intelligent Money launches service for inactive clients

Intelligent Money launches service for inactive clients

Intelligent Money has launched a new white label investment tool that allows advisers to offer a solution to inactive clients who no longer receive face-to-face advice.

The company said that it would meet the requirements of all advisers who need to evidence to the Financial Conduct Authority that they offer a service level for clients who are no longer receive face-to-face advice.

Julian Peniston Hill, chief executive of Intelligent Money, said that DIY platforms are “actually hugely expensive for what they are” and described robo-advice as “a highly flawed concept”.

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Instead, the Intelligent Money system includes a 0.5 per cent fee for providing the service, and costs 1.37 per cent a year, which the company claims is less than some platforms that do not internally manage risk/reward to a set target date.

“We needed to develop a solution to this as for an increasing number of people online is the new real world. Any advice constraints would not allow for this, so we developed a non-advised direct offer solution that offered a fully managed service,” he said.

He added that robo-advice was mostly limited to Isas, but that this service was able to cover the pension issue.

The underlying funds for the service are ETFs, with discretionary investment management from Quilter Cheviot. The product can be white labeled for any advice firm.