Just Group has introduced an adviser referral solution for what it calls ‘square peg in round hole’ clients.
Its aimed, said Just, at financial advisers who are keen to concentrate on their more profitable business streams.
Just explained that HUB Referral Solutions aims to offer high quality advice on three specialist areas – retirement income, care funding and equity release – to people who advisers are unable to help because, for example, advice costs are prohibitive, or the individual needs specialist advice in a market where the firm does not provide regulated advice.
The new service allows advisers to earn an introducer fee and where they choose to, maintain ownership of the individual relationship with the peace of mind that people are receiving the right support.
“Advisers often come across prospective clients who are like a square peg in a round hole – they don’t neatly fit into the firm’s business model,” said Stephen Lowe, group communications director at Just Group. “That could be because it won’t be cost-effective to advise the individual, or the advice is in a specialist area they don’t cover or perhaps even because they are simply too busy serving existing clients.
“As an example, our research found that just over a quarter (26%) of prospective clients who approached advisers for retirement income advice in the last 12 months did not fit the firm’s business model. Yet nearly four in five advisers (79%) admit taking on a client they knew would not be cost-effective.
“HUB Referral Solutions ensures those people will receive high quality advice or guidance, depending on their needs. The adviser benefits from earning an introducer fee while not being distracted from their core business.”
HUB Referral Solutions is provided by HUB Financial Solutions, one of the companies in Just Group.