Fund platform and investment manager Fidelity has launched a new restricted advice wealth management service called Fidelity Wealth Management.

A full Financial Planning service will be added in due course, the firm says.

While the company has run a financial advice arm for some years, it says the new service will bring together its advice facilities in a “centralised offering” for the first time.

The advice fee will be 1% of the amount invested subject to a minimum fee of £1,000 and a maximum fee of £10,000. The ongoing review service costs 0.5% of the amount invested. VAT may also be added.

Fidelity’s Personal Investing business had 280,000 customers in mid-2020 but has grown strongly through acquisition in recent years. Late last year it acquired Legal & General Investment Management’s UK Personal Investing business which manages £5.8bn in assets for 300,000 clients. It also bought Cavendish Online.

Initially Fidelity Wealth Management will offer investment and retirement services with a plan to expand on these with the addition of estate, tax optimisation and Financial Planning services.

Clients will be able to select services most relevant to their needs including how frequently they speak to an adviser.

Advice can be arranged as a single meeting or reviewed annually, and through several channels depending on a customer’s preference - including telephone or video conferencing.

Simon Gibbons, head of UK Wealth, Personal Investing at Fidelity, said: “There is a continued and growing need for financial advice services which help consumers to optimise their wealth as effectively as possible.

“The introduction of Pension Freedoms, increased longevity, and the transfer of wealth within generations means this is particularly acute amongst those planning for retirement. Fidelity Wealth Management builds upon our existing wealth and retirement experience, allowing us to offer even greater support and peace of mind for those customers seeking advice.”

Stuart Welch, global head of Personal Investing and Advisory at Fidelity, added: “The FCA has noted the progress made in closing the UK’s advice gap in recent years, however has stressed there is still significant work needed to ensure those who require help in managing their finances have access to services which can help them with the decisions they face.

“The launch of Fidelity Wealth Management, alongside our other platform tools and guidance services, means we are able to offer a wide variety of sources of support to suit a range of customer needs.”