Intelliflo executive chairman Nick Eatock says there is no reason for advisers to move away from the back-office provider after its sale to fund house Invesco.
Money Marketing understands the acquisition was worth £200m and will see Intelliflo move away from its private equity owner HgCapital, which has backed it since 2013.
Speaking to Money Marketing after the deal, Eatock says he struggles to see why advisers would be unhappy with the new arrangement.
Eatock says: “What does this mean for [advisers]? It means greater investment in technology, it means we will be looking for an increasingly global footprint. The spread of advisers across the world is a lot wider than the UK, which means it does not create price pressures on UK advisers for us to build technology.”
He adds: “I struggle to find out why someone would have an issue with this, especially given our 100 per cent commitment to open architecture.”
Eatock says Intelliflo will not be seeking to get custody permissions or compete with platforms in the future.
He says: “The drivers behind this from an Invesco perspective are it believes technology is increasingly important as part of adviser businesses and it wants to make sure that moves the right way because if advisers have got the technology they will carry on being there. That is good news for Invesco but also other asset managers and product providers too.”
Eatock adds: “Anything we do with anyone in this space, whether it is Invesco or any other party automatically goes into our open interface to allow any other third party to do the same thing with this. This is not protectionist, this is quite the reverse.”
The deal will see more investment in Intelliflo’s offerings, including exploring the development of a “gamified” fact find for advisers.
It’s robo-advice offering, launched in 2015, will also likely see further investment. However, Eatock says there are no guarantees Invesco funds will be added to that service.
He says: “The reality is there are a whole range of different fund manager options on there and they will continue. We do not dictate what funds an adviser should use, they have full choice of the investment solutions they want to use.”