Advice firms should not become fixated on remaining independent, network and support service provider Sesame Bankhall has said.
Distribution managing director Nick Kelly said the key for large networks was not to insist on independence, but offer a range of opportunities for its members.
"At the moment there is the idea that an IFA is best, but will people pay for that?" he said.
"The problem is if there is a bigger overhead for an independent adviser without any benefits over restricted advice."
Last month, the group announced the launch of its ‘Foundation' package, an entry-level proposition for advisers looking for low-cost support.
The service, expected to start at around £180 per month, would help advisers deal with lower-value clients and convince them of the potential of using a support service.
"£40,000 is probably around the level at which it is profitable for fee-based IFAs to give annuity advice," Kelly said.
"But what about those with pots of £20,000 or £30,000? Small IFAs need to have access to scale."
Firms that have no expansion plans "will be very happy" with the package, he continued, but the hope is that larger and more ambitious firms will eventually graduate to the full service.
Kelly also called on other firms to adopt a more transparent approach to the tie-ups they have with distributors and providers.
"As firms start to partner up, we would encourage advisers to do more due diligence on what they are offering," he said, adding this is especially important given the expected consolidation of the data market.
He said it is expensive for advisers to build their own technology is very expensive, and this will ultimately lead to more outsourcing to firms like IntelliFlo.
The group is currently developing its investment platform Optimum Investment Management with fund manager Henderson.
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