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RSM Tenon unveils restricted service Link2wealth

by Jun Merrett on Feb 04, 2013 at 10:12

RSM Tenon unveils restricted service Link2wealth

National IFA RSM Tenon Financial Management has launched restricted advice proposition Link2wealth, predicting around a third of its 15,000 clients will move to the new service.

The new venture will feature an execution-only offering powered by the Cofunds platform and a telephone-based service providing advice on ISAs, stakeholder pensions, general investment accounts and life insurance.

It is a separate company to RSM Tenon Financial Management, with four ex-bank advisers on its staff. Link2wealth is set to recruit two more advisers for its launch stage, with more recruited as the company grows. RSM Tenon said it would move around 700 clients a month from its independent advice arm to the restricted offering.

John Porteous (pictured), head of wealth management at RSM Tenon, said the group was committed to independent advice in its financial planning arm but recognised the need to cater for clients at a lower cost.

‘There is a segment of clients for whom either the cost of financial planning is too expensive or the proactivity of financial planning is not what they’re after.

‘Link2wealth will advise you in a narrow range of products and services. That might just be the basic stuff but when you look at the statistics, it’s what the overwhelming proportion of people consumes.

‘We’ve built a service model so they can have access to good basic advice but referring them for independent advice in the event that they need it.’

4 comments so far. Why not have your say?

j p

Feb 04, 2013 at 10:43

good luck when you are L&G tied agents

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Gillian Cardy

Feb 04, 2013 at 11:16

"National Financial Adviser RSM Tenon has launched restricted advice propositon Link2Wealth ... "

Firms may only hold themselves out to be Independent if the only advice they provide is Independent advice ... we're financial services professionals in this 24/7 - let's get it right otherwise what hope has the rest of the world got??!!

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Feb 04, 2013 at 11:51

So yet another corporate structure used to get around the rules of independence.

Link 2 wealth will gain access to presumably orphan clients who signed up to an independant offering. The restricted ex bankassurance advisers have access to an extremely limited range of products so advice may well be ditch the complex 6 fund investment of less than 50K and place it in a nice, simple risk managed multi managed fund for which we will have an adviser charge of 4% plus 3/4% or some such fee increased as the sums are low.

however, if clients have more than (say) 50K to invest then the ex bank advisers will pass them over to the IFA division and recieve a big lump of their adviser charge.

If a big outfit like Tenon does not wish to service its clients with lower sums invested, why does it have the right to transfer them to substandard service just because it cannot see the profitability.? Why has it not been forced to write to the disenfranchised clients and told them it will rebate all renewals as it no longer wishes to advise them, and encourage them to seek a local IFA who may be able to look after them profitably?

Who owns the clients? Certainly Tenon IFA but an associated group? I think not.

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Ian Lees

Feb 04, 2013 at 12:15

It has always amazed me that those who really should know better - and their tardy sales attempts " to get an edge ", means they neither concentrateon the Independent arm - or their Tied agents ( whether restricted in part or on the whole ). I experienced this as a " broker consultant at scottish widows between 1986 and 1993 - wherre the management ( and I use the word advisedly, and in the most general of terms ) - sat on the fence ( becasue they enjoyed the experience ) - and couldna make their mind up or take a decison on who to support . So they made us sit a pathetic exam - and as scottish widows had so many clients - direct - we the consultans had to sell to them ( get paid full commisions ) as well as going round accontants and other IFA's - to generate business. I was most successful as you can see from my sales figures for Fife ( 3rd top salesman - for they had no women at that time, for Scotland - Edinburgh Branch - excluding Glasgow and Ayr ) . The management even gave us microfiche with all the records of clients, agents, advisers - and IFA's ( Brokers ) - from which we could deal. This was produced regularly. Our sales records showed the volume of direct busines - with no advice for which broler consultatns received commissions ( in the form of EAP Estimated Annual Premium ). When I tell you my top Broker in London produced 20,000 EAP - and my direct business was significantly higher - it demonstrates the real worth of IFA's to Scottish Widows - which may explain one of the reasons for segragating clients - and selling direct or through Accountancy firms - on a non advised basis.

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