As we’ve reported before all the mainstream Banks are now back in the advice business. Having all left the business en masse back in 2012 when the Retail Distribution Review did away with commission and moved to fee-based advice, they are now back almost 10 years later.
As Independent Financial Advisers we’ve always offered something much more than the Banks limited tied advice services, but that doesn’t mean to say that that Banks aren’t needed in the advice market – they are.
One of the good things Banks can do is to provide advice on a mass market scale, which small advisers can’t do. This is an important service because it introduces the benefits of advice to a wider audience helping more people to do more with their savings. Doubly important in today’s environment of misleading online advertising and high-risk cryptocurrency temptations.
HSBC for example, have now almost got a full advice service right down to saving £100.
Clients can still access their face-to-face adviser service, where costs start at 2.75% of invested assets. But those with assets of £50,000 can access their virtual advice service online. The “robo advice” service costs 0.5% initially and then has service charges of 0.65% on the platform and funds.
What they are hoping to introduce is an extension of this service all the way down to £100 investments or £50 a month regular savings.
That would be a real benefit.
Once more people can access the benefits of advice it can only help more bespoke advice firms like ours as people get used to the tangible financial benefits of advice. People can then choose whether to consult Chartered Financal Planners like me.