Investment firm Octopus has launched a tech-focused restricted advice business aimed at new-to-advice customers.
Octopus Wealth will offer restricted advice using a range of products and services from within Octopus Group and from elsewhere.
It currently has two advisers and is run out of a separate office to the rest of the group.
The group says the development of the offering began in response to September’s interim report findings from consultancy firms Ignition House and Critical research to inform the Financial Advice Market Review.
Findings showing nine out of 10 Brits are not seeking financial advice means there is one adviser per 2,000 people, Octopus says.
Chief executive Simon Rogerson says: “It’s no secret that there aren’t enough advisers in the UK. Too many people are going without the smart advice that could help transform their lives for the better, and we think that should change.
“That’s the rationale behind our new business, which will use technology to focus on people who perhaps haven’t considered the need for financial advice before, but who could really benefit.”
In addition to new-to-advice clients, the main focus for the adviser offering will be on younger adults.
The initial flat fee for the advice will be £2,000 with ongoing fees set at 1.8 per cent and tiering down depending on client asset valuation.
Face-to-face advice services will be available in addition to online assistance with ongoing fees covering investment management, funds charges and dealing fees.
Rogerson says Octopus will also look to offer its advice solution to external advisers as an integrated system.
The new advice business follows the 2016 launch of Octopus’ fintech innovation arm, as well as its separate cash management platform and a property-backed lending service.