The advent of robo-adviser style services can help draw a clearer distinction between regulated advice and Financial Planning, IFP chief executive Steve Gazzard says.
Mr Gazzard believes that the increasing prevalence of online and automated systems can help rather than hinder Financial Planners.

He said: “I don’t see it as a threat to Financial Planning at all. In some ways I see it as an opportunity to better define Financial Planning.

“I think it helps to define the difference between regulated advice and Financial Planning. Financial Planning being an all encompassing process which takes all your hopes, goals and dreams and changes that into a plan on how to achieve those things. Robo-advice is ultimately about selling products through regulated advice processes.”

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Automated advice could form a part of a fully-fledged Financial Planning business, he said, but overall he sees it operating within larger businesses as a graduated service proposition.

He said that while the mass market would benefit from Financial Planning the cost may well be prohibitive and he could envisage automated advice filling a gap and being the right path for certain investors.

He said: “If you’ve got £15,000 and want an Isa you might as well go and use robo-advice.”

These services should be cheaper than face-to-face advice, he added.

One example of automated advice he has examined closely recently is Wealth Horizon, powered by Parmenion.

He said: “I think for someone who wants to get advice on a simple investment it’s an easy process and looks to me a solid proposition.”

Outgoing FCA chief executive Martin Wheatley said last year he wanted to explore whether strides forward in artificial intelligence can help deliver more automated advice and contribute towards solving the 'advice gap'.

A number of online advice firms have been launching over the past couple of years, including Wealth Horizon, set up by IFP board member Chris Williams CFP^CM, and SaidSo by IFP Surrey branch chairman Keith Churchouse CFP^CM.