The US fund firm, one of the world’s largest, has so far given few details of its plans which are at “early stage.”
It has stated, however, that the FCA has approved its plans so that it can consider its options. There is no word on whether it will build its own advice team or acquire other advice firms.
Vanguard told Financial Planning Today that details of charges and costs had not yet been decided and no firm launch date has been set. It is not clear if the advice business would be independent or restricted.
Vanguard head of Europe Sean Hagerty wrote to adviser clients this week to explain the plans.
He wrote: “The past year marked ten years since Vanguard first started working with UK advisers. From the beginning we’ve set out to serve the needs of those looking to build a better financial future by taking a stand for all investors, treating them fairly, and giving them the best chance of investment success.
“In order to deliver on these principles, Vanguard has consistently evolved to meet the changing needs and preferences of our investors. With this in mind, as a valued partner, I wanted to let you know of two new developments in our UK business.
“In order to provide additional levels of service to our self-directed clients, we are exploring the launch of a direct to consumer financial advice offer in the UK. These efforts are at an early stage. As part of this process, the Financial Conduct Authority has granted Vanguard the necessary regulatory permissions to provide retail advice. However, there is not currently a timescale for bringing a proposition to market.”
Mr Hagerty said the company remained a strong supporter of “fee-based financial advice” and would not turn its back on advisers.
He added: “Financial advisers will always play an important role in providing holistic wealth management and counsel to investors who want a more personalised service. We are committed advocates of the value advisers add and will continue to invest in the services and support we provide to help traditional advisers with their practices.”
The company is creating a new team at Vanguard to work with advisers and help them increase net returns for their clients. They will provide a range of additional services including portfolio analytics and consulting, investment and product analytics, and model portfolios, supported by a data and technology team.