The Exchange is planning to give IFAs access to Autif's EMX electronic trading platform free of charge.
The Exchange is set to thrash out commercial terms which could enable it to offer its 12,000 IFA users the service free of charge. It says Autif's trading initiative has to be viable for IFAs.
The Exchange does not charge IFAs for quotations services at the moment and it would be reluctant to change its stance.
The company has signed a letter of intent confirming its intention to use the EMX system and now wants to negotiate “the best possible terms for IFAs”.
EMX has come under fire for neglecting IFAs with proposed charges of up to 80p per transaction. But sources believe The Exchange could either absorb the cost itself or negotiate a negligible tariff from EMX because of its large IFA user base.
The move comes just days before Autif members vote, on Friday, on whether they pay an extra 75 per cent of the association's subscriptions to help fund the initiative.
Former EMX director Paul Loach has this week written to Autif members direct outlining his proposal to fund the initiative via a third party, removing it from Autif's control.
But Autif is confident members will stump up the extra cash and that it will remain in industry hands.
The Exchange managing director business to business Nick Prestwich says: “Our business model is not to charge IFAs for quotations. It is important IFAs can trade via the EMX platform and we are determined to negotiate the best commercial terms for them.”
Autif chairman Alan Ainsworth says: “The development with The Exchange is very important for EMX. The criticism we have been getting has been misplaced. The proposal will go through the SGM without touching the sides and funding will not be a problem.”
*The Exchange is expanding its Exweb services to link IFAs to the consumer mortgage site Emfinance allowing them to provide a mortgage application and tracking service.
It is also setting up a two new databases of information for investment bonds and term assurance, together with an on-line credit referencing service enabling IFAs to verify their clients' public credit information.