Ascentric has revealed the first IFA firms signed up to use its platform as it starts operations after nine months in development.
The seven initial firms are Evolve Financial Planning, Beaufort, Pensions Reserve (Park Row), Stafford & Co, Thomas & Gentry, JLT and Sector Investments.
Each of the firms will be given share options once they have transferred £1m in assets on to the wrap provider’s platform.
They will then be offered £2,500-worth of equity for each further £1m under management transferred to the platform.
Ascentric says another four IFA firms are close to moving their assets on to the platform. It is looking to sign up another 100 firms by the end of the year.
Evolve was using James Hay Wrap until recently but has moved to Ascentric because it felt James Hay’s rec-ent charge increase from 50 basis points to 65 basis points on small portfolios was not justified.
Evolve managing director Antony Williams says: “I thought that was just too much of an increase for our clients. In order to get a very low charge of 0.2 per cent, you would have to have a very large portfolio indeed and they do not even agg-regate a husband and wife’s portfolio.”
Ascentric executive managing director Hugo Thorman says: “These first seven IFAs will get share options in the wrap once their first £1m in assets is transferred onto the platform.”