Being told you are no longer the right fit for your bank is not just a financial inconvenience. For many people, it is personal.
In this edition of The Financial Journey Insights, CEO Oscar Hjälmås sits down with Chartered Financial Planner Stuart Buchan to talk about what happens when private banks raise the bar, what it feels like for the clients affected, and what your options really are.
Coutts, the private bank owned by NatWest Group, has tripled its minimum wealth threshold for new clients from £1 million to £3 million. Existing clients below the new level are not being removed, but fees are going up and service levels are coming down.
For people who have banked with Coutts for years, sometimes decades, that can feel like a quiet rejection from an institution they were proud to be part of.
This conversation goes further than the headlines. Stuart spent years as a Relationship Private Wealth Manager at Coutts, and before that at Royal Bank of Scotland and NatWest. He has seen how the banking model works from the inside, how restricted advice shapes the recommendations clients receive, and why the shift towards higher thresholds was already visible before it became public. He and Oscar discuss what clients in this position should be thinking about, the questions worth asking any prospective adviser, and how independent financial advice compares to what a private bank typically offers.
For anyone in Dorset, Hampshire or further afield who is reassessing their wealth management arrangements, this is a useful conversation. It covers the practical side, fees, service levels, how to compare firms, but it also gets into the emotional reality of being moved on by an institution you trusted. That part is rarely talked about, and it matters.
Whether you are a Coutts client, a client of another private bank facing similar changes, or simply someone who wants to understand the difference between restricted and independent advice, this episode is a good place to start. It is a reminder that you do not need to meet a bank’s threshold to receive proper financial planning and genuine attention from a qualified independent financial adviser.
Key Takeaways
- Coutts has raised its minimum wealth threshold from £1 million to £3 million for new clients. Existing clients below the new level are not being exited, but fees are increasing, and service levels are being reduced.
- Other private banks are making similar moves. HSBC, Barclays, and JP Morgan have all raised their arrival thresholds in recent years.
- Stuart describes the move to independence as being “defrosted.” At an independent firm, the research team selects what is right for the client, not what is available on the shelf.
- Oscar suggests speaking to at least three independent Chartered financial advisers before making a decision. That gives you a clear basis for comparison.
- Independent advice can be more cost-effective than private banking. Oscar cites one example where Baggette + Co quoted 20% of the cost of a restricted adviser for the same work.
- Stuart says the biggest red flags are declining service levels, fewer contact points, and poor follow-up communication.
- Both Stuart and Oscar agree that £1 million in investable wealth no longer qualifies as ultra high net worth. The threshold for receiving proper financial planning should be much lower.
Listen to the Podcast
Listen to the full conversation between Oscar Hjälmås and Stuart Buchan.
Podcast Timestamps
00:00 – 00:28 – Pre-roll teaser: Stuart on how affected clients may feel
00:28 – 01:48 – Introduction: Why this conversation matters and what Coutts has done
01:49 – 02:32 – Stuart’s first reaction to the news as a former Coutts insider
02:33 – 03:33 – What happens to clients with less than £3 million at Coutts
03:34 – 04:07 – Other banks making similar threshold increases
04:08 – 05:23 – The differences between an independent financial adviser and a private bank
05:24 – 06:31 – Banks buying financial advisory practices and creating a new middle layer
06:32 – 07:10 – How it feels for clients when fees go up and service goes down
07:11 – 09:18 – The identity and pride tied to private banking, and why £1 million is no longer what it was
09:19 – 10:23 – Why independent financial advisers are a natural alternative
10:24 – 11:20 – Stuart’s own journey from private banking to Baggette + Co
11:21 – 12:12 – How advice differs between restricted and independent models
12:13 – 13:51 – What restricted vs independent advice means in practice, and why some bank clients chose independence when it was explained to them
13:52 – 14:52 – The biggest surprise for clients moving from a bank to an independent firm
14:53 – 15:06 – Oscar on why he feels more comfortable giving advice as an independent
15:07 – 16:09 – What to do first if you have received a letter from your bank
16:10 – 16:57 – KPIs and scorecards inside private banks vs the independent model
16:59 – 19:24 – What questions to ask when choosing a new financial adviser: Chartered status, independence, and relationship fit
19:25 – 21:14 – Understanding fees, mandates, and choosing the right service level
21:15 – 21:43 – The three fee models at Baggette + Co
21:44 – 22:38 – Red flags to watch for when choosing a new adviser
22:39 – 24:59 – Is independent advice more expensive than a private bank?
25:00 – 26:00 – Will more banks raise their thresholds? Stuart’s view on the future
26:01 – 26:40 – Challenger banks entering the market and why face-to-face matters
26:41 – 27:29 – Stuart’s one takeaway for listeners
27:30 – 27:54 – Oscar’s closing thought on knowing your options
27:55 – 29:26 – What Chartered status means for clients
29:27 – 30:30 – Closing remarks and how to get in touch
Full Transcript
Introduction
Oscar Hjälmås (00:28): Welcome to The Financial Journey Insights. I’m Oscar Hjälmås, CEO of Baggette + Co Wealth Management. Today I am joined by my colleague Stuart Buchan, a Chartered Financial Planner here at Baggette + Co. What makes this conversation interesting is Stuart’s background. Before joining us, Stuart spent years as a Relationship Private Wealth Manager at Coutts, and before that at Royal Bank of Scotland and NatWest.I wanted to have this conversation because of something that has been making headlines. Coutts, the private bank of the royal family, has tripled its minimum wealth threshold. To become a client, you now need £3 million. That is up from £1 million. This is not just a Coutts story. Banks across the industry are raising the bar, pushing clients who fall below these new thresholds into different, often less personal services. There are people out there right now, people with significant wealth who have been loyal to their banks for years, perhaps decades, who are being told: you are no longer the right fit for us. What does that feel like? What are your options? Is the advice you were getting from a bank truly independent in the first place? Let’s talk about it.
Stuart’s Reaction as a Former Coutts Insider
Oscar Hjälmås (01:49): Stuart, when you first saw the news break, what was your honest first reaction? Not as a financial planner, but as someone who had worked inside that world.
Stuart Buchan (01:58): Thank you for inviting me in for this conversation, Oscar. To be honest, it was not a surprise. There was clear evidence, even when I was working within the banks, that something like this was going to happen. It is very expensive for banks to give advice to clients. There were indicators that changes were ahead. When the news broke, I was disappointed. I was not surprised.
What Happens to Clients Below the New Threshold
Oscar Hjälmås (02:33): Can you explain what happens in reality? Say you have £1.5 million of investment wealth at Coutts. What are the next steps for those people?
Stuart Buchan (02:44): Private banks like Coutts have made it clear that existing clients will not be exited. You will not be removed from the bank. But what is becoming clear is that fee structures for clients below the threshold are becoming quite severe. That may naturally push clients elsewhere.
For new clients, the requirement is straightforward. You need £3 million in assets under management, or £3 million of lending. That threshold is firm.
Other Banks Making Similar Changes
Oscar Hjälmås (03:34): Other banks are doing the same thing.
Stuart Buchan (03:36): You are right. This is happening across the piece. Barclays, JP Morgan, HSBC. A lot of these banks have different layers of service depending on your assets under management. Mass affluent, high net worth, ultra high net worth. Where your wealth sits determines the level of service, and what you pay for it.
Independent Financial Adviser vs Private Bank: What Is the Difference?
Oscar Hjälmås (04:08): You have been on both sides. What would you say the differences are between having an independent financial adviser and having a private bank? You mentioned that fees tend to be higher in a private bank. What else differs?
Stuart Buchan (04:32): Banks like HSBC, Coutts, and NatWest have historically prided themselves on a high level of service. But the advice you receive is predominantly restricted. You are limited to the products within those parameters. Those may be in-house designed products. An independent adviser has the freedom of the market. Coming from one world to the other is like being defrosted. You can look at the whole market with a strong research team and select what is right for each client, rather than following an in-house product journey.
Banks Buying Advisory Practices
Oscar Hjälmås (05:24): A few private banks have started buying financial advisory practices. Do you see that becoming a middle layer? Standard banking on the bottom, a financial advisory arm in the middle, private wealth on top?
Stuart Buchan (05:43): I think that is the model. There is a desire among bank clients for advice. Historically, teams of people were giving it. That has changed. It is difficult to find a bank on the high street now, so a lot is done remotely. Unless you are in the high net worth or ultra high net worth category, you are unlikely to have a dedicated private banker. What we are seeing is that banks recognise they do not want to lose clients entirely. They are finding ways to keep people within the group.
How It Feels for Clients
Oscar Hjälmås (06:32): This is interesting from a psychological perspective. You have serviced clients throughout most of your career. How do you think it feels for those clients to be told their fees are going up substantially? They are not being pushed out, but they are being led out.
Stuart Buchan (06:56): These are very proud clients. They do not necessarily shout about who they bank with. But they are proud of it. I would imagine this is quite a bruising experience, socially and personally. Some may feel they no longer have enough wealth for this level of service. For some, it might actually be a relief. The bank was moving in a direction they were uncomfortable with. They have nearly £2 million with the bank, and they are only receiving telephone-based advice. They want more than that. It is a significant change. And I think many clients will feel the impact.
The Identity Attached to Private Banking
Oscar Hjälmås (08:11): Coutts is the bank of the royal family. There is an identity attached to it. How do you think the transition feels for clients being moved on?
Stuart Buchan (08:26): Some will feel bruised and disappointed at having to move to a lower level of service with fewer contact points. But we need to recognise that the threshold of £1 million is not what it was in terms of wealth. I understand why the shift has happened. Banks are always looking at costs and looking to right-size. From the client’s perspective, I think many will now be asking: where can I go to get the same quality of advice I had through a Coutts or HSBC Global? I think it will be a trigger for change.
Independent Financial Advisers as an Alternative to Private Banking
Oscar Hjälmås (09:19): We are happy to work with clients at those levels of wealth. Do you think there is a natural transition from a private bank to an independent financial adviser?
Stuart Buchan (09:33): I do. What I have experienced is that most clients’ day-to-day banking needs are straightforward. The hook for the bigger banks was that everything was under one roof. But look at how people bank now. It is mostly done on devices. So if there is a service where you keep your bankers for day-to-day transactions but work with an independent advisory firm for your wealth planning, that is a good model. Baggette + Co is in a strong position to help with that.
Stuart’s Move from Private Banking to Independence
Oscar Hjälmås (10:24): You made the jump yourself. Talk us through that.
Stuart Buchan (10:33): I moved across to Baggette + Co a number of years ago. The writing was on the wall. There was right-sizing, downsizing, trimming. Clients were being moved from banker to banker, from wealth manager to wealth manager. It felt fragmented. I took the decision to move away from banking and dedicate my career to wealth management in an independent setting. It was not a difficult choice. I have enjoyed it.
How Advice Differs Between Restricted and Independent Models
Oscar Hjälmås (11:21): How does giving advice from a private banking position compare to giving it independently?
Stuart Buchan (11:34): In private banking, the focus was often on the size of the investment. A larger mandate might move towards a more tailored approach, but still looking in-house. As an independent, irrespective of the amount, you open up and look at the whole market. For the client, that is a meaningful difference.There is still a substantial gap in the market for independent firms to help clients in this way.
Oscar Hjälmås (12:13): What you are touching on is the difference between restricted advice and independent advice. Have you found that being independent gives you more freedom to connect with clients? From my own perspective, I came from a network model. When you say to someone “this is the best solution I can provide you” compared to “this is the best solution for you,” it is a subtle difference. But for me, it changes everything.
Stuart Buchan (12:49): I agree. In banks I worked in before, there were two streams of advice. Restricted advice, and then hidden away was the independent team. The banks were promoting their own in-house products, but as part of the conversation, you had to offer the client the option of independent advice.
When the difference was explained properly, a lot of clients said: why would I not go the independent route? There was nothing wrong with most of the restricted products. They were fine for the mass market. But sometimes they simply were not appropriate for a specific client. That is where independence steps in.
The Biggest Surprise for Clients Moving to an Independent Firm
Oscar Hjälmås (13:52): What would be the biggest surprise for a client coming from a private bank to an independent firm?
Stuart Buchan (14:08): Clients are coming to us more educated and more informed than they were ten years ago. The opportunity to present a completely independent view is the key difference. In a morning meeting, we might recommend one solution. In the afternoon, for a different client, a completely different one. That is the nature of independence. When you are offering restricted advice, the morning client and the afternoon client may well end up with something very similar. The independent route allows us to work with our research team and present the scenario. Between us, we look at what is most appropriate. It works.
Oscar Hjälmås (14:53): I would not say perfect. But I feel much more comfortable giving advice in this environment. I feel like you are able to put the client first at every point.
Stuart Buchan (15:05): I agree with you.
What to Do if Your Bank Has Raised the Bar
Oscar Hjälmås (15:07): Someone is listening to this today. They have just received a letter saying: “Dear Mr and Mrs Smith, we are going to do XYZ.” What should they do first?
Stuart Buchan (15:19): If you are receiving a letter telling you that your fees are increasing and your service level is changing, I would imagine some clients will look at each other and agree the moment has come to seek advice elsewhere. For some, it may not be a surprise. Running a bank is immensely expensive. Banks have always been looking at their return on investment and trimming costs. Bringing in a client with £1 million is no longer what the banks are looking for.
KPIs Inside Private Banks vs the Independent Model
Oscar Hjälmås (16:10): In the bank, did you have performance indicators?
Stuart Buchan (16:14): There were a lot of metrics. We operated what was called a scorecard. How we dealt with clients, what products we promoted, what products we were looking at. There was a range of KPIs.
Oscar Hjälmås (16:32): I am not saying this is the same for all independent firms. But do you have any KPIs here?
Stuart Buchan (16:38): I never have. The model at Baggette + Co is that we do the best for our clients at all times. We treat clients fairly, and if we can offer solutions, we present them honestly. We do not work against a range of KPIs.
Questions to Ask When Choosing a Financial Adviser
Oscar Hjälmås (16:59): Let’s say you are not a financial adviser. Your best friend comes to you and says: I have received this letter, what should I do? Should they speak to several firms? Does Chartered status matter? Does independence matter? Where should they go?
Stuart Buchan (17:26): I would say: look for a Chartered firm. That speaks powerfully. Look for independence. A cautious, sensible house that believes in the preservation of wealth and treats every client according to their own objectives. Chartered status, total independence, a focus on preserving what you have built. Baggette + Co fits that.
Oscar Hjälmås (18:08): What questions should they be asking? Many of these people have banked with one institution for years, possibly decades. They are entering new territory. What can you put in their armoury?
Stuart Buchan (18:21): First, look for Chartered status. It tells you what sits behind the door. Then clarify that the firm is fully independent. Ask the adviser to explain what that means from their firm’s perspective. If you have Chartered status and independent status, you have a strong starting point. After that, it is about people. Make sure you get on with the person you are meeting. Trust and understanding come with time.
Understanding Fees, Mandates, and Service Levels
Oscar Hjälmås (19:25): What about fees and products and targets? For a lot of people, this is a foreign world. They do not know what good looks like. What should they check?
Stuart Buchan (19:55): Understand the fee structure. Do not be afraid of that conversation. We all pay for good advice. I would also check that the firm takes a genuine interest in your situation regardless of the mandate size. Whether you are putting money into an ISA or building a large portfolio, your case should matter to them. And the relationship with your adviser is critical.
Oscar Hjälmås (20:33): I completely agree. Here, we offer three fee structures: percentage, fixed, or hourly. Some mandates do not need ongoing advice, or only need advice on their terms. Others need continuous support. It is about choosing a service that fits your needs. Not one that fits the firm.
Stuart Buchan (21:15): I would echo that. The three levels work well. There is a solution for an hourly, transactional arrangement, and there is a solution for someone who wants an ongoing relationship and generational planning. Baggette + Co covers both.
Red Flags When Choosing a New Adviser
Oscar Hjälmås (21:44): What are the red flags? You are going out into the world looking for a new adviser. What would you watch for?
Stuart Buchan (22:04): I would anchor it around the level of service, the follow-up, and the contact points you have with your adviser and the firm. If communication starts to feel questionable, that is a red flag. Oscar, one thing I get asked a lot: is independent advice more expensive than staying with a bank? What would you say?
Oscar Hjälmås (22:39): It completely depends on the firm. Fees vary significantly. We have quoted work for clients that was compared to quotes from other tied advisers. In one case, we were 20% of the cost of the restricted advice. That is why I always suggest speaking to three different financial advisers. Make sure they are all independent and all Chartered. You will get a good understanding of the market. I appreciate that takes some effort. But many of our clients have been with us for over twenty years. It tends to be more cost-effective to be with an independent firm than a private bank, simply because of the overhead differences. Private banks have large offices, auxiliary services, and costs that need to be recovered. That is the nature of finance.
Will More Banks Raise Their Thresholds?
Oscar Hjälmås (25:00): Stuart, do you think we will see more of this? More banks raising thresholds, more clients being moved into digital or telephone services?
Stuart Buchan (25:10): Without question. We are already seeing banks increasing their arrival thresholds across the piece. Clients who are already with these banks but do not hold ultra high net worth are being invited to stay, but the fee structures are going up and the contact points are going down.
I think we will see a significant number of private bank clients now taking the opportunity to seek out a good Chartered firm.
Challenger Banks and the Value of Face-to-Face Advice
Oscar Hjälmås (25:45): I noticed a challenger bank is looking to launch a service for anyone with more than half a million pounds of investable wealth, offering a private banker. What do you think about that?
Stuart Buchan (26:01): Someone is trying to fill a gap in the market. You have to pay for good talent. These new banks will emerge. A lot will be online. You may be given a private banker or a wealth manager, but they may still be on the end of a phone. When you have wealth under management, there is real value in sitting with your adviser face to face. A proper review, a proper conversation.
One Takeaway for Listeners
Oscar Hjälmås (26:41): My last question. If there is one thing people should take away from this conversation, what would it be?
Stuart Buchan (26:51): The world of private banking is shifting. The levels of wealth that used to be acceptable for an ultra high net worth arena are no longer enough. But you are not on your own. There are excellent Chartered firms of independent financial advisers, like Baggette + Co, that are ready to sit down and have that conversation with you. You can keep your banking where it is. A firm like Baggette + Co would then look after your investments, your financial plan, and your generational planning.
Oscar Hjälmås (27:30): For me, the main thing is that people need to know they have options. I am not saying whatever bank you are with now is wrong for you. I think this is a good moment to review your finances and find a solution that works for you and your wider family. The relationship with your financial adviser or wealth manager is a close one. It needs to work for you long term.
What Chartered Status Means for Clients
Oscar Hjälmås (27:55): Stuart, you talked about Chartered status. Can we talk a little more about that? What does it mean for the client?
Stuart Buchan (28:17): The whole issue of being Chartered is almost a badge of honour. It demonstrates that support staff are registered through a governing body, have done the studies, and have passed the exams to support advisers who have gone the extra mile with qualifications. At a firm like Baggette + Co, at least half of the advisers are Chartered, and the others are working towards it. The support staff are also qualified and encouraged to continue their learning and development. Chartered status is a badge that demonstrates skills and commitment.
Closing Remarks
Oscar Hjälmås (29:27): Stuart, thanks for being so open about your experience. What makes this conversation different from anything else on this topic is that you have lived it from the inside. You sat in those rooms. You had those conversations with clients. You made a deliberate choice to do things differently.
If you are listening to this and you are one of the people we have been talking about today, someone whose bank has raised the bar, or someone who is starting to wonder whether the service you are receiving is working in your interest, I want to leave you with this. You do not need £3 million to deserve proper financial planning. You do not need to meet someone else’s threshold to receive real attention, proper advice, and a genuine relationship with someone who understands your life and your goals. You can find us at baggette.co.uk. We would be happy to hear from you.
Thank you for listening to The Financial Journey Insights. We will see you next time.
Speak to an Independent Financial Adviser in Dorset About Your Financial Plan
If this conversation has raised questions about your own situation, you are not alone. Many people who have relied on a private bank for years are now reassessing their options. That is a sensible thing to do.
Baggette + Co Wealth Management is a Chartered, Directly Authorised, independent financial advisory firm based in Poole, Dorset. We have held Chartered status for over 14 consecutive years. We serve clients across Dorset, Hampshire, and further afield. We have no ties to any bank or product provider. No scorecards. No in-house product range to push. Our independent financial advice comes from the whole of the market.
There is no charge for an initial conversation. If you would like to talk through your options, speak to Oscar Hjälmås on 01202 676 983 or email advice@baggette.co.uk.
Sources:
- NatWest Group press release: acquisition of Evelyn Partners for £2.7 billion (February 2026) – https://www.natwestgroup.com/news-and-insights/news-room/press-releases/our-updates/2026/feb/natwest-group-announces-the-acquisition-of-evelyn-partners-and-a.html
- Spear’s WMS: Coutts minimum threshold increase reporting (April 2026) – https://spearswms.com/wealth/mind-the-wealth-gap-the-secret-entry-points-of-private-banking/
- WealthBriefing: Coutts threshold analysis (April 2026) – https://www.wealthbriefing.com/html/article.php/uk’s-coutts-hikes-minimum-threshold–creates-opportunity
Frequently Asked Questions About the Coutts Minimum Increase and Alternatives to Private Banking
Coutts now requires new clients to hold at least £3 million in total wealth, including savings, investments, and borrowing arranged through the bank. The previous threshold was £1 million. The change was confirmed in late 2025 and applies to new clients only. Existing clients below the threshold are not being removed, but may face higher fees and reduced service levels.
Coutts has said it will not exit existing clients who fall below the new threshold. In practice, fee structures for those clients may become more expensive, and contact points may reduce. Some clients may choose to leave as a result. If you are in that position, it is worth understanding what alternatives are available to you, including working with an independent financial adviser.
Restricted advisers can only recommend products from a defined range. These are often designed in-house by the bank they work for. Independent financial advisers have access to the whole market and are required to give unbiased recommendations. For a detailed explanation, see our guide to restricted vs independent financial advice.
Most IFAs charge transparent fees, either as an initial advice fee, an ongoing service fee, or a combination of both.
It depends on the firm. In the podcast, Oscar Hjälmås describes one case where Baggette + Co’s quote was 20% of the cost of a restricted adviser. Private banks carry higher overheads. Those costs are passed on through fees. Independent firms often have lower cost bases and more flexible pricing. At Baggette + Co, you can choose from a percentage fee, a fixed fee, or an hourly fee.
We recommend checking for Chartered status and confirming the firm is fully independent. Ask the financial adviser to explain what independence means at their firm, specifically. Understand the fee structure and ask whether your case will receive genuine attention regardless of its size. Meet the person who will be advising you and see whether the relationship feels right.
Chartered status is awarded by the Chartered Insurance Institute and demonstrates that a firm and its advisers have met high standards of qualifications, ethical conduct, and professional development. It requires annual renewal. Baggette + Co has held Chartered status for over 14 consecutive years
Yes. HSBC, Barclays, JP Morgan, and Standard Chartered have all adjusted their thresholds in recent years. JP Morgan reportedly doubled its minimum to $10 million. Standard Chartered moved to $5 million. The trend is consistent across the private banking sector.
Take stock of your current financial plan. Look at the level of service you are receiving. Consider speaking to two or three independent Chartered financial advisers. Ask about their fee structures, their independence, and how they would approach your situation. There is no obligation to stay where you are.
Yes. Many clients keep their day-to-day banking where it is and use an independent financial adviser for wealth management, financial planning, and investment advice. Stuart Buchan makes this point in the podcast: most people’s daily banking needs are straightforward. The planning and advice sit separately.
Look for a firm that is Chartered, Directly Authorised, and fully independent. Check that the advisers hold relevant qualifications. Ask about the fee structure. Baggette + Co is based in Poole, Dorset, and works with clients across Bournemouth, Hampshire, and further afield. You can view the full team here.
DISCLAIMER:
Baggette + Co. Wealth Management is authorised and regulated by the Financial Conduct Authority. The Financial Conduct Authority does not regulate tax planning, cashflow planning and estate planning. The above information is correct to the best of our understanding as at the date of publication. Nothing within this content is intended as, or can be relied upon as, financial advice. Capital is at risk. The value of your investments (and any income from them) can go down as well as up which would have an impact on the level of pension benefits available. Your pension income could also be affected by the interest rates at the time you take your benefits. The tax implications of pension withdrawals will be based on your individual circumstances, tax legislation and regulation which are subject to change. You should seek advice to understand your options at retirement. Tax rules may change, and the value of tax reliefs depends on your individual circumstances.