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IFAs search for ways to serve low-end clients

Aviva survey shows advisers feel very emotive about dumping customers

Aviva says advisers are reluctant to drop lower-end clients as they segment their client base in the run-up the RDR but do not yet know how they will service them.

At a recent Marketforce conference in London, Aviva said its research suggests advisers do not want to “orphan” clients who do not fit with the firm’s post-RDR proposition.

Tenet distribution and development director Keith Richards says: “Although some firms have used segmentation in the past to move away from lower-end clients, the majority of the IFA community feel very emotive about dumping clients. Few are keen to do this but are trying to understand the cost implications and the alternative ways of continuing to provide a service.” Richards suggests firms are likely to look for an execution-only offering which allows clients to dip into advice when needed.

Plan Money director Peter Chadborn says his firm plans to offer an execution-only service delivered by a third party to service these clients. He says: “I do not see the RDR as an excuse to drop clients. The watchwords for me are responsible non-advice, which will be delivered by a third party , but it is essential it is delivered under our brand to reassure existing and potential clients.”

Facts and Figures Financial Planners Simon Webster says: “For those of us who are not focusing on high-net-worth and are more generalist in their approach, I do not understand why clients would be turned away. I do not see any advantage to my business or the client in telling them to go somewhere else. It would be daft.”



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