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Informed Choice plans execution-only platform launch

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Informed Choice will launch an online execution-only investment platform early next year.

The advice firm has been working on the proposition, called IC Direct, for six months and plans to launch in March.

Informed Choice managing director Martin Bamford (pictured) says the fee structure for the platform has not yet been finalised.

He says: “We are going big on this. It will combine a series of low charges with full transparency.

“We are going to apply the standards that are coming into force for the advisory market to our execution-only proposition.

“There will be a clear charge for the platform and a clear charge for the fund manager. There will be no hidden kick-backs or any of that sort of murky stuff going on.”

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Comments

There are 14 comments at the moment, we would love to hear your opinion too.

  1. Kick-backs are illegal payments Martin, if you know groups doing this report them or stop using the term.

  2. @mark dampier

    Thanks for your comments, Mark. I use the term ‘kick backs’ to describe any payment that isn’t explicitly agreed (and understood) between the investor and provider. It is our aim to bring the same RDR levels of charging transparency to the execution-only market which will apply to the advisory space from 31st December.

  3. A good idea Martin. All it woudl need would be for you to be willing to issue log ins for both a client and their adviser to make this something attractive for other advisers to use with transactional customers who only need help on a limited basis from time to time.
    I’ve said it before, I think companies like Hargreaves Lansdown are missing a trick in that they could have done this themselves.
    well done martin.
    See I can be positive 😉

  4. Nigel Barker-Smith 4th December 2012 at 11:42 am

    Kick-backs, smoke and mirrors etc. call it what you like. Roll on January 1st when clients take back full control of their money.

    Well done Martin & good luck.

  5. Its still an incorrect term, you cant make up the definition yourself

  6. Only the FSA are allowed to change dictionary defintions Martin, you know that.

  7. Superfluous pedantry, and tautological inexactitude… made my day…

  8. @Phil Castle

    Thanks, Phil. We are exploring how the technology might work to enable us to accept customers from other advisers who want to refer people to IC Direct. I’m not sure about the ability to provide a log-in for the adviser as well as the customer, but will look into this and let you know when I have the answer!

  9. @Nigel Barker-Smith

    Thanks, Nigel.

  10. Maybe I’m a bit slow, but I still don’t see why a client would want to use and execution only platform via an IFA when they could go direct via one of the consumer platforms (EG HL). And how careful must an IFA firm be to prove they have given no guidance or advice at all?

    The compliance implications must be horrific for what is in context a relatively small firm.

  11. Join the long line of other EO platforms who have launched well ahead of IC. Get a grip fellas, your on another planet. You’ll publicise the opening of an envelope given half a chance. Shocking.

  12. Philip spierling 4th December 2012 at 8:59 pm

    Are we all assuming that come 1st of January 2013 , that the general public are going to start doing all their financial advice themselves.

    Every one is talking direct to consumer at the moment,and cheap pricing.

    Direct platforms have been around for years, hargrevies lansdown etc , yet clients still come for face to face advise.

    I can see a lot of money getting wasted on these cheap D2C wraps,platforms , just like is was on stakeholder pensions.

    After all stakeholders were cheap and the public did not rush out and fill their boots with them ,did they.

  13. @Harry Katz

    Thank you for your comments (and concern), Harry.

    IC Direct will be one of the consumer platforms, simply offered by an IFA firm. Customers will not receive any advice and will execute their investment decisions online, in common with other execution-only platforms. As a result, the compliance implications will be sublime rather than horrific.

  14. @Philip spierling

    Thanks for your comments, Philip. I’m not convinced that the rise in direct to consumer is a consequence of the RDR. Certainly some additional remuneration transparency will drive some existing advised clients to execution only, but the main growth we see is from the younger generation who find all of the information they need on the Internet and want more control over their investment decisions.

    RDR or no RDR, the demand for execution only investment platforms will continue to grow as a result of this demographic change.

    Clients certainly do want and need traditional, face to face advice. What we are launching with IC Direct is designed to add to our range of services, rather than replace any, and will certainly target a new client segment.

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