Fidelity Fundsnetwork head David Dalton Brown says the scheme is running with three IFA firms and is the result of increased adviser demand for passive investments.
He says: “We are running pilots for the first time where you can buy an ETF, investment trust or any stock in the market online and it is consolidated into your account. IFAs have not deman- ded that from us in the past but they are now demanding that.”
He says the firm will look to make the products more widely available if the test is a success.
Seven Investment Management Justin Urquhart Stewart says: “It is becoming a prerequisite for platforms to offer ETFs and other passives. They are not suitable for everyone but they can be a very cost-effective and flexible way of covering different asset classes.”
Investment Quorum chief executive officer Lee Robertson says: “We use them for tactical advantage within portfolios so we want access when we need them. There are a lot of financial planners now who believe that ETFs basically deliver all they need to deliver from their investment solutions.”