Hargreaves Lansdown has launched its telephone-based independent advice service with clients charged 1 per cent of assets for initial advice and 0.5 per cent if they want ongoing advice.
Hargreaves revealed in April it was looking at reducing the minimum investment required to access its advice services from £50,000 to £20,000 through telephone-based advice.
It expects many customers who use the service to pay the 1 per cent charge as a one-off before moving onto its non-advised proposition.
The service, which has eight telephone-based staff, soft-launched a few weeks ago before the formal launch this month.
Ongoing advice will cost 0.5 per cent or a minimum of £495. The charges are the same as clients receiving face-to-face advice.
Clients with complex needs are charged 2 per cent of their first £200,000, 1 per cent on assets between £200,000 and £1m and 0.5 per cent on assets over £1m.
Hargreaves head of advice Danny Cox says: “This is aimed at clients looking to go DIY and who maybe want a helping hand along the way. They have perhaps been disenchanted from their bank or financial adviser.”
Guide to Advice director Kim North says: “This is to be applauded, we need more large, powerful companies to offer mass-market advice. The fact it is independent advice is valuable and justifies the 1 per cent fee.”
Chase de Vere offers a largely reactive telephone and email-based “primary” advice service for existing clients with £50,000 or less while Lighthouse is set to launch a non-advised offering in 2014 largely based around telephone services.