Hargreaves reveals telephone advice costs

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Hargreaves Lansdown has revealed the cost of its telephone-based independent advice service which will see clients charged 1 per cent of assets for initial advice and 0.5 per cent if they want ongoing advice.

Hargreaves revealed in April it was looking at reducing the minimum investment required to access its advice services from £50,000 to £20,000 through telephone-based advice.

The firm says it expects many customers who use the service to pay the 1 per cent charge as a one-off before moving onto its non-advised proposition.

The service, which has eight telephone-based staff, soft-launched a few weeks ago before the formal launch this month.

Customers who want ongoing advice will pay a 0.5 per cent charge or a minimum of £495. The charges are the same as clients receiving face-to-face advice.

Clients with complex needs are charged 2 per cent of their first £200,000, 1 per cent on assets between £200,000 and £1m and 0.5 per cent on assets over £1m.

Hargreaves head of advice Danny Cox says: “This service is aimed at clients looking to go DIY and who maybe want a helping hand along the way. They have perhaps been disenchanted from their bank or financial adviser.

“It is designed to help people get started and hopefully from then on they will be DIY investors.”