By Steve Conley | Academy of Life Planning
In a notable strategic pivot, Schroders has pulled back from its direct-to-consumer (D2C) ambitions, doubling down on its commitment to the advised channel through Benchmark Capital. This move is not just a tactical adjustment—it could reshape the economics of financial advice in the UK.
The rationale is clear: by streamlining technology and consolidating systems within Benchmark, Schroders aims to strip out up to 80% of the cost and friction traditionally embedded in the advice process. If successful, this could mark a turning point for both advisers and their clients.
A Win for Advisers… or Clients?
By investing in adviser-focused tools—digital onboarding, secure messaging, straight-through processing, and data aggregation via open banking—Benchmark is reducing the administrative burden on advice firms. The intention, according to Benchmark CEO Ed Dymott, is to free up advisers to spend more time with clients and support a broader range of needs.
But a critical question emerges: Who ultimately benefits from these efficiencies?
Will advice firms retain the cost savings, improving their profit margins and making their business models more scalable? Or will these savings be passed on to consumers in the form of lower fees and reduced advice thresholds?
Lowering the Barrier to Entry?
In theory, with reduced operational overhead, firms could extend their services to clients with fewer investable assets—those previously priced out of face-to-face advice. This could play a role in closing the “advice gap” the industry has long struggled with.
However, this expansion would likely depend on whether advice firms are willing to relinquish traditional minimum thresholds and serve a broader base. Here lies a tension: should firms prioritise profitability, or pursue wider inclusion in line with the industry’s social duty?
The Asset Manager Question
Tying into an end-to-end service model via Benchmark—fully integrated with Schroders’ asset management solutions—offers operational simplicity. Yet it raises another issue: independence. Will advisers be subtly nudged to recommend in-house products? If so, can clients still expect unbiased, whole-of-market advice?
The benefits of a unified ecosystem are tempting, but firms must carefully balance the convenience of vertical integration against their fiduciary responsibility.
A Fork in the Road
Schroders’ pivot away from D2C to focus on the advised model may ultimately strengthen the advice profession. By backing advisers rather than bypassing them, Schroders affirms the centrality of human relationships in financial planning—something we at the Academy of Life Planning have always championed.
Still, as this model matures, firms will face a choice: use efficiencies to pad margins, or to democratise advice.
For those aligned with purpose-led planning, the opportunity is clear: reinvest the savings to make advice more accessible, more holistic, and more human.
Academy of Life Planning 