Ascentric’s white-label service Independent Funds Direct Limited has put its direct-to-consumer business Fundsdirect up for sale.
The Royal London-owned firm this week confirmed the direct fund supermarket business is not part of its ongoing strategy.
It says the move will eliminate any conflicts of interest with its adviser-facing business. Fundsdirect launched in 1999 and has £23m of assets under administration and around 2,000 customers.
IFDL managing director Hugo Thorman says: “Fundsdirect participates in the D2C market, which is expected to benefit hugely from the RDR, but it is ultimately at odds with our ongoing strategy which is to focus on intermediaries. We would expect to continue to administer the assets and products for the new owner.”
IFDL’s white-label service, which provides platform technology to a number of advisory firms including Succession, Towergate and Openwork, will be unaffected by the move. IFDL will launch a service allowing advisory businesses to white-label the platform and offer their own non-advised proposition before the end of the year.
Murphy Financial associate partner Adrian Murphy says: “The fact there is such a low level of assets on the platform may make it difficult to attract a buyer.”