Advisers refusing to serve low value clients are damaging the IFA brand, according to trade body the IFA Centre.
Managing director Gill Cardy (pictured) said many IFAs feel a "moral obligation" to serve all existing clients, regardless of income.
"To desert low value clients just because they are not very profitable does not fit well with the concept of treating customers fairly and it is surely the responsibility of all IFAs to build consumer trust in our brand," she said.
"The approach to dealing with low value clients seems to be to create restricted propositions with a short list of approved product providers and a limited range of in house fund.
"IFAs convinced of the value of independent advice to all types of client need to look at how they can service low value clients with a low cost service."
Advisers may have to change their business model to save on costs, she said, utilising technology to deliver advice remotely.
"By keeping low value clients on board in this way, (when other distribution channels might turn them away), IFAs will be able to differentiate themselves from the rest of the market and demonstrate how seriously they take their duty of care to their clients.
"In any event, many of today's high net worth clients were yesterday's low value clients. Providing them with independent advice is not only the right thing to do, it makes commercial sense as clients are extremely loyal to their advisers."
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