So if the advice turns out to be wrong, customers can seek recourse through the Financial Ombudsman Service. 4million from an income of just £168,000 in 2016, but the firm said the changes have been made with a broader suite of services in mind. TOP DIY INVESTING PLATFORMSHigh-street bank NatWest has launched a fully regulated robo-advice proposition charging £10 for customers seeking to invest sums as low as £500. Whether NatWest s scale means it will not suffer the same fate as its robo competitors remains to be seen. Some major banks offered investment advice to such individuals in the past, but left the space around four years ago after a string of high-profile fines and regulatory upheaval to clean up the financial advice sector. A Financial Conduct Authority review published in 2013, which involved 231 mystery shopping exercises across six major firms in the retail banking sector, found that investment advice was inadequate in a quarter of all cases. Customers will be able to track their investment performance through their normal online banking account. If the user chooses to do so, the service levies £10 plus fees for the investment - which are capped at 0.
The launch of NatWest s proposition comes as other banks, including HSBC, prepare to unveil their own variant. The new online investment advice service will pit the bank against the likes of Nutmeg, MoneyFarm and Scalable Capital in the battle to win funds from individuals with modest sized nest eggs. Moneyfarm, another popular robo-adviser, recently introduced a fee where there was none before for investors with less than £10,000 and ramped up costs for those with larger sums. There’s no charge for the advice, unless customers decide to invest. He added the robo would suggest alternative financial products to customers it deems unsuitable for investments. The service can be used by customers of the bank with as little as £500 to invest as a one-off or £50 per month. High-street bank NatWest has launched a fully regulated robo-advice proposition charging £10 for customers seeking to invest sums as low as £500. The launch follows a growing trend of established banks returning to the investment advice arena following a string of fines for unsuitable recommendations several years ago.
Many see it as an opportunity to add another revenue stream to bolster profit margins. News of the price revision came just two months after Moneyfarm posted a loss of £6. What s more, investors are restricted to a range of five diversified funds each with a different risk-rating - which is not particularly comprehensive.NEM.. The service questions users on their financial situation, attitude to risk and what they hope to achieve by investing. Charging just £10 for advice, NatWest s robo is cheap compared to others in the market, but it s important to stress that you aren t comparing apples with apples here. The service is essentially an add-on to the bank s pre-existing NatWest Invest online service that offers a range of five funds, each with a different portion in stocks, bonds and cash. .Storj.