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Platform challenger reveals charges

Money-Coins-Pound-Currency-Close-up-700x450.jpgEmbark 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.

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Comments

There are 4 comments at the moment, we would love to hear your opinion too.

  1. Insolvency practitioners must be salivating.

  2. Perhaps start the article with the benefits of the platform rather than the typical sell it cheap stack it high mentality that has historically not been in the best interests of advisers and clients alike. I would have been more interested in reading more on how it operates and how it will benefit clients of all wealth. Everytime I read something about shave a basis point off here or shave a basis point off there it makes my skin go cold! Moving clients from one place to another everytime a new fad comes along is risky and not in their best interests. A new platform on the market pushing low costs and no track record is worrying. Other providers of other technology for instance in the broadband sector and media sector, even in the mobile communications sector sold everything on cheaper price and look what happened to their services. What would u prefer, track record, solid foundations, good service, and financially sound or cheaper? I know what my clients would say. Who has this cost debate really come from? The industry and people just making stuff up to make themselves busy or u suspecting clients who all feel they have been ripped off over the years?? Hmmm. Why not focus on making the industry less complicated and more accessible to more people. This would happen from clearer, easier to follow regulation and guidance (not vast quantities of pages) that would make the industry more feasible for small advice firms rather than big impersonal institutions. Less regulation and pressure on advisers means they could spend more time with clients. More guidance on a low cost form of advice where we don’t carry the can solely for everything that goes wrong forever…. yeh this would help consumers. The list could go on!

  3. I have never understood the mentality of “buying in business”

    It just sets of the alarm bells at outset, and not a sustainable business model somewhere down the line, costs have to be increased massively to pick up the losses incurred or go bust or sell up.

    I do wonder if Embark really do understand how expensive it is be in this silly industry ?

  4. Maybe people should look into the history of Embark and the group of companies that it is constituted of, before suggesting that the platform has no long-term legs. The platform is new, but I would suggest that there is plenty of know-how at Embark.

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