Hargreaves Lansdown is looking to boost its adviser numbers amid frustrations that only a few “good-quality” professionals are available to hire.
Hargreaves chartered financial planner Danny Cox says the complexity around pension tax allowances, pension freedoms and changes to inheritance tax planning is driving the firm towards a hiring spree.
Money Marketing understands the Bristol-based firm is planning to hire at least 10 advisers in the coming months.
Hargreaves currently employs 100 advisers across telephone and face-to-face advice, based in Bristol and around the UK. It envisages growth in both services but will push for more hires for telephone advice.
Cox says: “The problem is finding enough of the right-quality advisers in the right place.
“There are only 20,000 advisers who deal with investment and pensions and only a certain number of those are available for hire at any time, so we’d love to be able to grow our adviser force quicker than we can do.”
Advisers – who are employees of Hargreaves and not in partnership contracts at firms such as St James’s Place – are not tied to Hargreaves products and are not incentivised to advise on the firm’s funds, Cox says.
For standard investment advice Hargreaves advisers charge 1 per cent of the first £1m invested
For complex advice on issues such as income drawdown or real estate, the firm charges 2 per cent on the first £200,000, 1 per cent between £200,000 and £1m and no charge above £1m.
Informed Choice managing director Martin Bamford says: “Despite only offering restricted advice, Hargreaves Lansdown would be a great employer for a young adviser to develop their skills.
“Focusing their increased advice capacity on telephone delivery makes sense in an environment where advice needs to be affordable, in the face of growing regulatory costs.”