There is an increase in the number of wealth managers refusing clients because they fall beneath the minimum investment thresholds according to research from fintech Nucoro.
The sduty revealed that the average wealth manager turns away 71 clients every year. In addition, 33% of respondents stated they had have had to turn away more clients now than they did three years ago.
While a fifth (20%) of wealth managers allow clients with less than £10,000 in assets to invest, most of them need a higher figure. 36% require assets between £50,000 and £100,000, 24% between £100,000 and £250,000, but 11% require over £250,000.
Only 2% of wealth managers said they are turning away fewer potential clients and 49% claimed that the number hasn't changed.
Nikolai Hack, COO and UK MD of Nucoro, said: "Wealth managers are facing growing costs through increased regulation and compliance issues, and margins are also coming under pressure as fees fall. This means more wealth managers are choosing to only work with clients with larger investment portfolios and this is adding to a growing ‘advice gap', where retail investors are finding it harder to secure the help they need to manage their investments."
The research was conducted with market research firm PollRight and interviewed 53 wealth managers in September 2019.