Good Luck Finding Financial Advice - Unless You Have More Than Pounds 100,000 to Invest
Knight, Julian, The Independent on Sunday (London, England)
Concerns are growing that thousands of investors are being denied access to unbiased independent financial advice following a key rule change banning the payment of commission.
Because advisers now need to charge when giving investment advice - fee levels can be more than 160 an hour - they are focusing on very high-net-worth individuals, demanding that would-be clients have large sums to invest and, in effect, turning many "middle Britain" clients away.
"It has become apparent that an increasing number of IFAs are rejecting clients who don't have more than 50,000 of investable assets, which is the vast majority of people in the UK, as they are deemed commercially unattractive," said Mike Coady of the deVere Group. And even those with more than 50,000 to invest can find it difficult to find advice.
"I have heard of instances of people with more than 100,000 to put away being turned away from financial advice or in other cases people with a very specific one-off needs, such as inheritance tax planning when the individual is in their eighties, being told they will only be advised if they sign up to expensive annual financial reviews, which is high-cost overkill," said Gina Miller, the director of SCM Private, and a leading figure in the true and fair campaign for transparent charging. …