Introduction
The financial planning landscape is undergoing a seismic shift. Intermediating financial planners are raising their investable asset thresholds, leaving a growing number of clients in the lurch. This change is driven by increasing regulatory costs and the need to demonstrate value-for-money under Consumer Duty assessments. But is this strategy sustainable, or is it a self-inflicted wound?
The Scenario: A Case Study
Recently, I was approached by a tax adviser who had a client in a predicament. The client had been working with an Intermediating Financial Adviser (IFA) firm, based in Kent. The client had about £120,000 in a pension fund that a platform only available to intermediaries managed. Due to the firm’s new asset threshold policies, the client found himself without an adviser.
The Problem with Threshold Mentality
Raising asset thresholds may seem like a quick fix for IFAs to remain commercially viable. However, this approach is short-sighted. By doing so, they are effectively sidelining a significant portion of the market. This is particularly concerning given the commoditisation of the investment market, thanks to direct-to-consumer platforms. In essence, intermediaries are making themselves redundant.
Financial planning for those who self-direct their portfolios
At the Academy of Life Planning, we offer financial planning services for those displaced by adviser thresholds. We focus on clients who self-direct their portfolios, providing mentorship options tailored to individual needs. Our fees are transparent and capped, offering value-for-money without the need for asset thresholds.
Membership Options
- Unlimited Hours Option: Ideal for times of stress or change, fees are capped at £3,950 per annum for couples. The Game Plan – Couples | AoLP Shop
- Platform Choice: We guide clients in choosing a direct-to-consumer platform using Which Money, a subscription service costing £4.99 per month.
Conclusion
The rising asset thresholds in the financial planning industry are a wake-up call for both advisers and clients. While IFAs may believe they are safeguarding their business, they are, in fact, narrowing their market and potentially harming their long-term viability. Non-intermediating financial planning, as offered by the Academy of Life Planning, provides a more inclusive and sustainable alternative.
Academy of Life Planning 
Spot on Steve, this is an amazing opportunity for non intermediating advisers to be there for the underserved. Together we can make guidance available to everyone.
I believe we can reach more people by hosting live virtual group events on a monthly basis guiding them through the financial maze for a monthly ongoing fee.
We can organise and facilitate mastermind groups for small groups of no more than 6 people for those that are working towards certain goals etc. These groups will hold members accountable for their actions towards achieving there goals.
The list of what you can do when you adopt an holistic whole person life planning paradigm is endless.
Let’s reach 8 Billion plus ASAP!
This is spot on Steve, together as non intermediating planners we can embrace this opportunity to guide the underserved people of the world.
The ways of doing this through an holistic whole person paradigm planning process is endless.
There is a huge market for what we have to offer and we need to get the word out to the world.