Simon Tyler, managing director of high net worth London-centric IFA Chase De Vere, has plans to launch the new brokerage on the South Coast later in the Summer with what he hopes will have mass-market appeal. Tyler said a new customer–base of mid-market borrowers is emerging who see the value of advice but want a simpler, faster fee-free service.
“There is still a small group of brokers at the top end of the market, serviced by Savills and Chase De Vere, who provide a fully-fledged, comprehensive broker service to people who are used to paying fees for their financial services,” said Mark Chilton, chief executive of the new venture.
“By contrast, there is increasing fee-resistance in the UK and the quality and nature of the advice is dictated by the product. Brokers are also becoming more and more reluctant to sustain clients who play mortgage brokers off against each other,” said Chilton.
Research from the European Federation of Financial Advisers revealed that only one client in 1,000 is prepared to pay a fee for advice with the majority – 61 per cent – uninterested by the amount of commission the adviser received. However, the Life Insurance Association (LIA) is calling for a new approach to the FSA’s proposed pricing menu.
The LIA suggests a fee-charging template separating the charges for advice, order taking, arranging and on-going service which could be paid to brokers or costed into the product
