"Or worse, we would have to charge wealthier clients more to subsidise it. This was one reason we ditched percentage-based charging."
He believes people with savings of £10,000 need access to financial education and easy-to-understand information on products.
"That is incumbent on DIY platforms and product providers. The advice profession can't support a levelling up agenda driven by the FCA and provide a required level of service to clients who are paying the required level of fees."
On November 30 the Financial Conduct Authority published its plans for a new simplified advice offering, proposing to relax independent advice rules to make it cheaper and easier for firms to advise consumers about certain mainstream investments within stocks and shares Isas.
This included introducing a new rule that will allow firms to accept payment for core investment advice in instalments.
But Lisa Tipton, director of financial planning at New World Financial Group, believes the issue still centres on adviser charging, something the RDR turned on its head as it banned commission payments to advisers on retail investment products.
"The fact that many advisers still charge a percentage of assets under management means this is unlikely to change, as it’s just not profitable to help those who don’t already have substantial assets," she said.
"Yet those people that need financial help and education the most are often the least able to afford it."
Yet, she said, everyone could benefit from financial advice or guidance, and that the earlier they start the better.
Over the past six months, New World has introduced a free financial health check and working closely with employers to provide financial wellbeing presentations to their staff.
It also launched a subscription financial planning service earlier this year, which means clients can subscribe to full financial planning from £50 per month.
carmen.reichman@ft.com
