Hargreaves Lansdown is preparing to launch a low-cost direct to consumer discretionary portfolio service.
The firm already runs a full discretionary service with a charge of approximately 2 per cent for clients with over £150,000.
Hargreaves Lansdown head of financial planning Danny Cox says: “The new offering will be priced below 2 per cent and although the minimum investment level is still to be confirmed, the service is likely to be aimed at clients with under £10,000.”
The decision to set up the self-service proposition was made after the FCA issued guidance back in July on what constitutes advice across difference investment models, according to Cox.
The service is likely to launch in 2015, adds Cox, and is also likely to feature a range of risk-rate model portfolios.
Hargreaves reported a 7 per cent rise in profits as part of its interim results issued separately this morning detailing additional plans to expand its range of pension services following the Budget as well as adding more multi-manager funds and “enhance” its cash strategy.