The firm says the move is due to market conditions and will result in a significant scaling back of its current operation. Around 30 staff in Capita Wealth and Distribution Services have been told that their jobs are at risk of redundancy.
A Capita spokeswoman says: “I can confirm that following a review of current opportunities, we have decided that market conditions do not justify our continuing with the level of investment that we are currently making in the ‘Enabler’ programme.
“The platform supports the sale of financial products to the IFA community and, clearly, current market conditions have reduced and delayed the launch of new products. We have therefore decided to take a lower risk approach to servicing the existing distributors, providers and funds on a ‘business as usual’ basis.”
In November 2005 Capita announced the acquisition of IFA software supplier Quay for an undisclosed sum. Two months later it announced its takeover of
adviser portal Webline, also for an undisclosed fee. In November 2006 Capita
bought Synaptic Systems.
In January this year Coxell told Money Marketing that Capita was looking at
ways of packaging up its four propositions – Quay, Webline, Synaptic and
Enabler – into one single affordable support service for advisers.
Coxell said the outsourcing giant was in discussions with its partnering
providers to figure a way of bringing a “full solution for a lower cost” to
Finance and Technology Research Centre director Ian McKenna says: “There are an awful lot of major life companies who saw Capita’s involvement with the IFA software market as a significant advantage as to why they should use Capita as their outsourcing partner and I would imagine that these insurers are going to feel seriously let down. I will be surprised if there was not some falling out.”
Yesterday Moneymarketing.co.uk revealed Capita managing director of wealth and distribution services Graham Coxell is leaving the technology firm in July.