AWD Chase de Vere is considering introducing telephone and online-based services to cater for its low value clients next year.
Although plans are still at an early stage, the service could potentially be classified as ‘simplified advice', although this is an area that has not yet been clearly defined by the FSA.
However, the firm is not planning to expand its client bank through the new service and does not see it as a route for any further growth.
AWD's Patrick Connolly says: "We recognise we need to provide different breadth of services and different ways to give those services to clients.
"At the top end, for higher net worth clients, they would expect a full personliased service, lots of face-to-face contact and lots of regular contact with their adviser and their team.
"At the lower end, what we are not doing is saying 'we are not giving any service any more'. We feel we have an obligation to provide them with a level of service and we think it is the right thing to do under TCF."
"However, we are not going to be in the position, from a pure cost efficiency perspective, to provide them with lots of regular contact and so we will be looking at the best way of providing guidance and advice to these people."
The new services could be introduced during the first half of 2011, although no firm dates have yet been set.
Connolly adds the service will probably use a centralised telephone team and online information in order to deliver the service to clients.
Earlier this year, the FSA indicated level 4 qualifications may not be necessary among advisers offering simplified advice.
However, it has not yet set out any regulatory regime to cover the area and has not clarified how the FOS would adjudicate complaints.
While AWD will attempt to hold on to all its clients, other large adviser firms have indicated they may cull a proportion.
Towry recently defended its decision to close the accounts of 6,000 clients holding less than £5,000 in assets, arguing these smaller investors will be better served by banks.
‘Promising lead’ or ‘Back to the lab’?
Have economic cycles fundamentally changed?
Our weekly heads-up for advisers
Two global vehicles
'Further plug advice gap'