UK-based Echelon Wealthcare, a specialist independent advisory firm, has joined forces with Parmenion to offer an online platform for clients, offering 10 risk-rated baskets of passive funds.
“I would rather focus on getting some volume through the door and not just yield, which is what I’ve focused on so far,” said the firm’s managing director Alastair Rush. “I’m making it more resilient against risk.”
The initial cost of the service is 0.5%, which is split between Echelon and Parmenion. It also has an ongoing cost of 0.7%.
Reports on performance of the portfolios will be sent out to clients automatically and clients always have the option to speak to an adviser on an information-only basis.
“I don’t think IFAs should feel threatened. We should cast our net as wide as possible”
The service caters for clients across the wealth scale, including savvy investors who might choose to switch to a less costly proposition to stop hefty charges affecting their returns, and young professionals who might only have a few hundred pounds to spare each month.
Overlooked
“Often advisers don’t want to help people at the bottom end of the pool, and this service gives people more choice,” said Rush. “I think people who really should be saving are being overlooked because they can’t afford financial advice.
“Some advisers are threatened by digital services, but this is a shot-gun approach to appeal to a lot more people,” he said. “I don’t think IFAs should feel threatened. We should cast our net as wide as possible.”
Rush said he chose to work with Parmenion because of its proactive, forward-thinking attitude and “unclunky” architecture.
Echelon was originally set up for clients in the armed forces based in places like Iraq and Afghanistan, but has now evolved to cater for a broader audience.
The name of the service will be disclosed when it is launched in the next couple of weeks. It received compliance approval in July.
