Seven Investment Management is enabling advisers to take deposits and offer clients loans through its platform.
7IM chief executive Tom Sheridan says the new functionality aims to give “topend” advisers the ability to compete with private banks.
He says: “We think deposits are of great importance and will help top-end advisers compete with private banks. We have seen a large demand for this capability already.”
The automated deposit service is being soft-launched with around six 7IM staff accounts and is expected to launch fully on the platform by the end of May. The function will be available to advisers on the platform for no extra charge.
7IM, which has a total of around 500 advisers on the platform and £2.6bn assets under administration, is teaming up with Lloyds, Royal Bank of Scotland and Cater Allen on the initiative.
It will launch the adviser loan facility at the end of June. Sheridan says: “Effectively, this will mean being able to use a securities portfolio as collateral, which is important to high-net-worth clients.”
Murphy Financial associate partner Adrian Murphy says: “It is certainly an interesting move but it will be difficult to make a mark in the deposit sector because there is a lot of competition.”