Advice network pi financial has launched a centralised telephone advice service for up to 70,000 orphan clients.
The network, which has 107 advisers and 14,000 active clients, says it has 70,000 clients without an ongoing service agreement with their adviser.
It says these clients have been orphaned as a result of the RDR and the impact of the sunset clause, which bans all legacy payments between fund managers and platforms from April 2016.
The network will offer these clients a telephone and online advice service for an ongoing charge of 0.30 per cent.
The service will be staffed by a central team of four advisers initially.
Pi financial has appointed Momentum Global Investment Management to provide an investment solution for these clients, with platform and administration services provided by Novia.
Momentum will offer three models – cautious, balanced and dynamic – at a total cost of 1 per cent per year, including advice costs.
Pi financial managing director Tim Sutcliffe says: “My concern was whether the customers who have been caught by the unintended consequences of the RDR and sunset clause were being as well looked after as I would like.
“We can look after their basic financial planning needs over the phone, such as making sure they are using their full Isa allowance. If their circumstances change and they require a face-to-face meeting, we can pass them back to their original adviser.
“We feel we have a moral obligation to clients we have engaged with in the past.”
Sutcliffe says he expects the majority of the 70,000 potential clients to use the service. He adds that pi is keen to engage with other advice firms who may wish to refer clients to the service.