Thameside Financial Planning has launched an automated advice service as it targets intergenerational wealth from its existing clients.
The service is white-labelled with the firms’ existing back-office provider, Intelliflo, and will cost 0.93 per cent. It will primarily target the children of the firms’ “top clients”, the company says.
Thameside Financial Planning managing director Tom Kean says the offering is an attempt at “dipping our toes in the water” by following a similar model to that of online wealth manager Nutmeg.
Kean says: “We are going for the Nutmeg proposition. We are so tiny over here but our proposition is going to be 1 basis point cheaper [than Nutmeg’s]. We are calling the service ‘Pathway’ and it narrows down the choice of the client just as Nutmeg would do.
“We set parameters, we complete the suitability letters… but we are dipping our toes in the water without spending millions of pounds like Nutmeg seems to have done”.
The service will offer clients access only to the Vanguard LifeStrategy range of risk-rated funds.
Kean says: “We had the choice of 30 different funds, all risk rated. They were Architas funds, Standard Life Investments’ MyFolio and Legal & General. We tend to prefer Vanguard more by reputation than anything else.
“It’s regulated advice, then you can phone up [if needed]. If it all starts to go wrong and clients become too labour intensive, we can pull the plug on offering it, but to start with the goal is for us to offer it to clients who don’t quite fit our model.”