Towry is closing the accounts of its 6,000 smallest customers, saying the service it is offering them is not cost-effective.
The clients have average assets of £166 and hold a total of around £1m in funds. Towry is offloading all clients with less than £5,000 and targeting clients with assets above £100,000.
The move will affect former Edward Jones clients, which Towry bought in October 2009, and existing Towry clients. Clients will have to decide whether they want their savings liquidated or transfer to another provider within 45 days. If they do not transfer, they will be liquidated.
Clients will be charged £20 per security per account to transfer to another company. They will also be charged £57.50 to terminate or transfer an Isa account.
Head of marketing Peter Foster says: “A key part of TCF is to make sure you are promoting yourself to appropriate clients.”
Bestinvest senior investment adviser Adrian Lowcock says: “You have to focus on your expertise and they have decided to target the high-net-worth market.”