Embark Group has revealed the charges for its new platform and targeting savers with between £25,000 and £150,000 on launch.
Embark officially announced the launch of the wrap platform, which uses FNZ technology, today. As Money Marketing reported in September, it has been live for some time with white label partners and Embark’s existing book of business being moved onto the platform.
The platform will offer a personal pension and access to Isas, junior Isas, general investment accounts and third party investment accounts.
Embark says it will offer investors a “discounted” flat 15 basis point fee, regardless of portfolio size, for general investment accounts and Isas for people joining the platform before 31 December 2018. That price will apply to the client for “life”, even if they open a new product after the end of the offer.
Third party investment accounts will be offered at 10 basis points. A further 10 basis points charge is added for assets held in the Sipp wrapper.
From January 2019, third party investment accounts will have a 15 basis points charge, which decreases to 10 basis points the more assets that are placed on the platform.
The personal pension has a 27.5 basis points charge, decreasing to 20 basis points with the more assets placed on the platform. Isas and GIAs have a charge of 20 basis points that drops to 15 basis points the more assets that are on platform.
The platform will offer access to more than 4,000 mutual funds and securities and around 3,000 exchange traded funds. Embark will also offer a range of model portfolios including from BlackRock.
Embark chief executive Phil Smith says: “The Embark platform is set to materially disrupt the current platform market. It will enable financial advisers to address the advice gap through cutting edge, highly reliable technology.”
He says: “At the centre of what we are trying to achieve is a goal to pass ‘value’ back to consumers, whether they come as intermediated, execution only, robo or fully advised clients. Each of these channels has a material role to play in enabling appropriate consumers to save and invest safely, and appropriately.”
The platform offers real-time transactions and requires no “wet” paper signatures.
Embark now has more than £3bn assets on FNZ technology. Clients from the Avalon platform, which Embark acquired out of administration last year will be moved onto the new platform.