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Fidelity platform business posts £16m loss

Money-Coins-Pound-Currency-Close-up-700x450.jpgThe company that runs Fidelity’s platforms has posted a loss of £15.9m for the 12 months ended 30 June 2017.

Annual accounts posted to Companies House on 22 December for Financial Administration Services, which is the company that operates FundsNetwork and Fidelity Personal Investing, show the loss grew from £15.5m in 2016.

The accounts document says the company is continuing to make “considerable investment” into its UK platform business, which contributed to the operating loss recorded for the past two years.

Fidelity is changing its platform technology to Bravura Sonata.

The Big Interview: FundsNetwork boss on why consolidation is inevitable

It says: “This investment is expected to be a significant driver for future growth. It aims to deliver a much improved client experience and it will also drive significant efficiencies through the use of improved technology.”

According to the accounts statement, administrative expenses in 2017 were £163m (£166m). Net assets for 2017 were £94.7m (2016: £110.6m).

Service and platform fees in 2017 contributed £116.9m (2016: £74.4m) to the company’s £146.2m (2016: 173m) turnover.

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