View more on these topics

Embark: New platform will be ‘material disruptor’ on price

Embark Group’s new wrap platform will officially launch by the end of the month, partnering with investment giant BlackRock on account fund management and aiming to be a “material disruptor” with its pricing model.

Embark, which is the parent company of Sipp provider Hornbuckle, SSAS provider Rowanmoor and fund researcher The Adviser Centre, says the wrap platform is live already and has several clients on it.

It has been focusing on moving its back book of business onto the platform, which runs on FNZ technology, as well as a number of white label partners.

Embark chief executive Phil Smith says BlackRock is not an equity participant in the platform, nor was there an “economic exchange” between the two parties.

Smith says: “BlackRock is delivering model portfolios using a combination of active and passive ETFs and we are providing the vehicle by which that can come to market. We are doing that jointly because of the combined pricing value that will be very advantageous for customers that find it hard to get economically sensible advice through the IFA channel.”

Further detail on the platform’s pricing model will be revealed once it has fully launched but Smith says it will be a “material disruptor”.

The Embark Wrap already has £1.5bn assets under administration.

Clients from the collapsed Avalon platform, which Embark acquired out of administration in February 2016, will also be transferred to the Embark platform.

Recommended

General-Business-Handshake-Hire-Appointment-700x450.jpg

Hornbuckle parent acquires failed Avalon platform

The parent of Sipp firm Hornbuckle has taken over stricken platform and Sipp provider Avalon Investment Services. Embark Group has set up a new firm, Embark Investment Services, to take control of Avalon’s £300m of assets and 50,000 clients – of which 1,200 have Sipps. Avalon applied to go into special administration this week after […]

EU Flags European Union 480

FCA offers more flexibility over Priips reporting

Firms advising on or selling Priips products will be allowed to choose whether or not they include personal performance projections alongside Key Information Documents, the FCA has said. In a consultation paper published on Friday, the FCA finalised its approach to performance projections under Priips rules, following its recent update on disclosure rules for the upcoming […]

Martin Foden discusses how convenience is affecting the construction of fixed income portfolios

In this short video, Martin Foden, head of credit research at Royal London Asset Management, discusses how convenience is affecting the construction of fixed income portfolios. Watch the video in full The value of investments and the income from them is not guaranteed and may go down as well as up and investors may not […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There are 3 comments at the moment, we would love to hear your opinion too.

  1. Price is one thing, service and reliability are just as, if not more, important. “….because of the combined pricing value that will be very advantageous for customers that find it hard to get economically sensible advice through the IFA channel.” Does this mean Embark will be operating D2C rather than via IFAs?

  2. I wonder if they (or other readers on this site) are aware of the pricing model of The Share Centre and whether this new organisation will get anywhere near it?
    Pricing as a percentage is (or should be) a dead duck. The share centre has a flat fee and for an ISA portfolio is less than £60 per annum – irrespective of size. Trading is charged for, but if you have a large portfolio and only trade (let’s say) no more than 20 times a year it is still an unbeatable price. Service is OK too.

  3. I am concerned that the dash to the bottom on charges could result in unprofitable platforms closing. Furthermore the reliance on third party technology providers compromises platform development and cost control. As laudable as all this is the focus must surely be on safety of client assets followed by service standards before how many bips are charged. Platform failures could hit consumer confidence hard to everyone’s detriment.

Leave a comment