View more on these topics

Citibank pushing ahead with aggregation service

Citibank is pushing ahead with plans to launch the UK&#39s first account aggregation platform this summer despite warnings that such a service may breach criminal law.

FSA managing director Phillip Thorpe warned in May that although the regulator would not police aggregation services, FSA-regulated firms should not launch any service which may breach the law, regardless of the chances of prosecution.

But the US bank is going ahead with the platform after recently commissioning a report by City lawyers Rosenblatt, which concluded that the legal risks were minimal.

Aggregation services let consumers view all their financial affairs through one website.

Following the FSA&#39s comments, both Fidelity and Virginmoney put aggregation launches on hold.

Fidelity, which also plans to offer aggregation facilities to IFAs, says it is unlikely to launch a service before the end of the year.

Citibank&#39s service will be powered by US aggregator Yodlee. It has been welcomed by rival aggregators, which believe it will be a catalyst for further launches.

However, Ian Giles, director of international marketing for the aggregator Corillian, has warned that although aggregation should stimulate demand for advice, IFAs need to be aware of the risks. He says: “Links between the customer and IFA could potentially be broken.”

Citibank sales & marketing director Jonathan Mindell says: “This marks the beginning of a new era in personal finance.”

Recommended

Framlington NetNet fund manager quits

Framlington NetNet fund manager Chris Bell has quit the group to pursue a career in client relations with Tilney Investment Management. Bell was lead manager of the unit trust until May, since which Nick Evans has headed up the fund. The news comes as Framlington head of European equities Caspar Rock moves to Antony Milford’s […]

Norwich & Peterborough – Five Year Fixed Rate Bond

Thursday, 5 July 2001.Type: High interest account.Minimum-maximum investment: £1,000-no maximum.Interest rates: 5.75 per cent gross a year, 5.6 per cent gross a month.Term: Five years.Offer period: Until further notice.Withdrawal penalties: If no notice given, 180 days&#39 loss of interest on amount withdrawn unless at least £1,000 remains in bond.Tel: 0845 3002511.

R&SA ready to sell its life and fund business for£2bn

Royal & Sun Alliance is understood to be gearing up to start offering its life and fund management business for sale to rivals, with a£2bn price tag.The outcome of the review of its life business is expected next week, according to a senior industry source. This report will then be used as a sale document […]

Scotland funding move set to boost LTC market

The long-term care market in Scotland is set to boom following the Scottish Executive&#39s decision to extend funding to personal as well as nursing care, claim IFAs and LTC providers.They say the announcement in last week&#39s budget to commit£200m in funding over the next two years will make LTC insurance more affordable and more IFAs […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment