Vanguard prepping to enter UK advice space

In an email sent to clients on Thursday morning (9 January), Vanguard head of Europe Sean Hagerty said the firm was exploring the launch of a direct to consumer financial advice offering in the UK. 

He said Vanguard was in the "early stages" of the development and that there was no timescale set up for bringing a new proposition to market, adding: "We are committed advocates of the value advisers add and will continue to invest in the services and support we provide to traditional investors."

The head of Europe said a new team had been created at Vanguard who will be dedicated to partnering with advisers to increase net returns for their clients. 

IFS Wealth & Pensions co-founder and Chartered financial planner Ricky Chan said it will be interesting to see how Vanguard develops its proposition but said it could put pressure on the cost of delivering financial advice. 

"Advisers charging more [than Vanguard] will need to show clients why and show what additional value and service they are providing," he said, "They can't be complacent."

In October last year, Vanguard reduced its fees across 36 funds, bringing its average ongoing charges figure to 0.2% as part of the firm's efforts to offer better value for money to retail investors.

This followed fee reductions earlier in 2019 on its UK-domiciled, actively-managed fund range, the bulk of which met their three-year track records in June. 

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• Topics
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• Vanguard
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• Sean Hagerty
• FCA