A new financial advice firm – HT money trading as Hundreds and Thousands – has launched a business that will provide financial advice to lower-value clients with less complex needs. These clients normally fall outside their current advisers’ target market and into what is commonly known as the Advice Gap.
The firm has been set up to serve these lower-value client who are unprofitable for other advice firms now, but may become high-value clients in the future, therefore the firm does not want to lose them.
The vertically integrated business will provide clients with initial and ongoing advice, platform services, discretionary fund management and underlying funds for less than 150bps per annum and will streamline the advice process by utilising AI to guide the client through disclosure documents and the principles of recommendation so that they are better informed when speaking with their adviser.
If the clients’ circumstances change and warrant a more complex solution that better serves their needs and objectives or they fall within the ceding firms target market Hundreds & Thousands will pass them back to the originating adviser.
Company co-founder Paul Boston was a founder and director at wealth management platform Novia Financial and Copia Capital management and more recently a director at Wychfield Associates.
He said: “Too many clients that our industry views as ‘low value’ are being locked out of the financial advice process, even though they are the ones who, arguably, require it most.
“Hundreds and Thousands has been set up to cater to the needs and objectives of these less wealthy clients. The beauty of our service is the ease with which transfers can be made to us and, when the client’s wealth grows and they become part of the adviser’s target market, we transfer them back.”
