Blog
Platforms need to show the client's side of that equation, not just describe their own. When the FCA called time on double-dipping, most platforms chose to skim interest rather than charge custody on cash assets. Why? Because it's a huge source of revenue. Transact is now the only platform that charges custody on cash but passes the interest back in full. The net effect is that interest more than covers the fee on the cash. Where the cash balance is large enough, the interest can cover their platform fees altogether, essentially leaving customers with negative fees.
Hargreaves Lansdown’s 19th July deadline is fast approaching. The consortium of PE houses making a collective bid for Hargreaves put forward an improved offer on 18th June, and to some collective surprise around the market, the HL board looks likely to recommend the offer to shareholders. That’s assuming, of course, that the offer is firmed up by 19th July and another potential bidder doesn’t emerge.
Making predictions is difficult at the best of times, but after two difficult years characterised by volatility and a dearth of flows, it's positively hazardous. Five years ago, we predicted that a realistic scenario for 2023 would be industry assets of £880bn, which is pretty close to where we are today. Last year, our realistic scenario for 2023 was £938bn, and again we think that number is still achievable in the final quarter of 2023.
We’ve given some thought to the headwinds facing the UK and how they might affect the platform industry over the next five years.
The D2C market exploded during the pandemic and competition for consumer business is fierce. AJ Bell’s direct platform, YouInvest, has done rather well out of it, but keen to not stand still it’s now going head to head with trading apps and Vanguard with its new app, Dodl.
The future of Chinese construction giant, Evergrande, is in the news this week as it struggles to meet scheduled debt payments on its bonds. A deal restructuring Chinese bondholders and the intervention of China’s Central Bank was thought to have bought some breathing space.
The FCA has published details of its consumer investments strategy. The aim is to create an environment that will encourage more people to invest while increasing consumer protection, both from high-risk investments and from outright scams. Basically, reducing the risk of rotten apples.
True Potential is in the news again. The offer from Cinven (a UK-based Private Equity firm that has raised over £37bn in over 40 years of operations) has been accepted and the price tag being talked about is in the region of £2.4bn. That's a lot of money. But what's more they plan to grow the business over the next three years and IPO it at a market valuation of c£5.5bn.
News broke today that Embark has been bought by Lloyds (LBG) for £390m. The deal is for all parts of Embark’s businesses, including advised platform Advance, but excludes the Rowanmoor Sipp business, which will be retained by existing shareholders.
Our CEO, Bella Caridade-Ferreira, sat down with Abraham Okusanya to record a podcast for Retirementals. In this episode, they discuss the journey that led to the creation of Fundscape, future aims for Finscape, Fundscape's joint venture with Altus, and her approach to saving for retirement.