AXA Wealth is to offer an option that allows clients to manage their own investments without having to pay advisor fees, in response to changes in demand for investment services following the introduction of the Retail Distribution Review reform package.

The firm has partnered with Coventry-based Simpson Financial Services for AXA Self Investor, which will allow clients to manage more straightforward investments themselves, including a funds-based stocks and shares ISA and trading account.

Clients will be able to choose from a range of around 170 open market funds, including the Favourites Fund Range from AXA Wealth’s specialist investment house, Architas, the firm said in a statement. 

"As clients have become more aware of the RDR, we have seen a growing market of people who are comfortable and confident enough to do their own research and place more straightforward investments themselves. We are pleased to offer this service to them through AXA Self Investor, knowing the service is offered through a well-known brand, with an emphasis on robust but user-friendly technology," said Rob Simpson, managing director of Simpson Financial Services.

The RDR was introduced at the beginning of the year, by the-then Financial Services Authority, to reduce risk of mis-selling and make financial advisors more impartial by stamping out use of trail commissions. As part of the new RDR, firms no longer earn commission set by the product provider, but are instead paid an advisor charge agreed with the client in advance.

While many have welcomed these changes, there are concerns that consumers will lose out by forsaking financial advice and become so called "DIY" investors.

Deloitte recently warned, for example, that 5.5 million people in the UK could fall into an “advice gap” as a result of the reforms, because they are unwilling or unable to pay fees.

A study carried out by Deloitte last year found that over half of respondents (54 per cent) would refuse financial advice altogether if they were to be charged a fee, while 47 per cent of those polled said they would reduce the number of times they sought advice if that advice entailed a fee of between £400 ($628) and £600.