Vanguard Group Inc. is culling its UK financial planning arm about two years after its launch, having struggled to attract clients.
Vanguard Personal Financial Planning was set up in April 2021 to offer retirement advice via the firm’s personal investor platform.
“After careful consideration, we have concluded that our clients are looking for other, more adaptable forms of financial planning from Vanguard,” a spokesperson for the US firm said in an emailed statement, adding that Vanguard was committed to develop “further financial guidance and advice services.” Customers will be able to use the service until May 31.
Vanguard went on a hiring spree last year for its broader personal investor unit, with new posts including financial planning experts. Clients with a minimum of £50,000 could get advice for an all-inclusive charge of 0.79%, according to a press release when the service launched.
Less than 10 roles directly connected with this arm are at risk, though Vanguard hopes to accommodate the people affected in other parts of the business, according to a person familiar with the matter.
The US asset manager’s personal investor platform in the UK now has 480,000 users with an average age of 38. Vanguard did not disclose the assets or number of users that had signed up for retirement advice. Citywire first reported the service was closing.
This article was provided by Bloomberg News.