London-based firm Ascentric is piloting a white label execution-only platform, which will allow advisers to manage their own investments online and to maintain relationship with clients who do not pay post-RDR fees, according to FT adviser.
Known as Investor Direct, the new pilot scheme will allow investors to manage basic accounts held on Ascentric, such as shares, funds, self-invested personal pensions, Isas and group investment accounts.
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The service provides advisors with a non-advice business, which can help them to maintain ties with lower-end clients.
Ascentric said that more advisers were looking to service lower-end clients without losing the relationship following the increase in fee rate after the implementation of retail distribution review.
The new service targets lower-end clients who may not be willing to pay an adviser charge or ongoing service fee, but still want to remain with the advisor client book in case they need advice later.
Thorman managing director of Ascentric said: "To save their income streams, advisers need to engage more with their clients – but what if the client cannot, or will not, pay an ongoing fee? Even when advisers use platforms, it is essential that there is support available for clients when they need it.
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By GlobalDataHe added: "If an investor thinks they can do it themselves, they will. If they just don’t have enough funds to pay an adviser charge they might just go down a DIY route. Investor Direct aims to make a difference by keeping the client-adviser relationship so that when the client’s financial circumstances change, the adviser can step in."
