Interactive Investor is set to launch a discretionary fund management service, Money Marketing can reveal.
The online direct broker which recently acquired TD Direct, is working on a new line of products and services and this will include a DFM, II chief commercial officer Alex Kovach has said.
Speaking at the Platforum D2C conference today, Kovach says: “We want to invest in better products, we have a clear vision, one proposition and one price.
“[Post-TD acquisition] we are starting our products roadmap and we are going to offer a DFM product…This will be a change story for the foreseeable future.”
II signed the deal to acquired TD in October. The DFM is set to launch in 2018.
Kovach has also confirmed the company will have one fixed platform fee to offer its customers. Before the merger, II operated a fixed fee model, while TD Direct operated on a percentage basis.
He says customers attracted to the II platform are “pricing conscious”.
He says: “[Having one price] is a good thing. For the services we offer for the platform one fee is the appropriate fee.
“[This conference] is the first time the importance of pricing is starting to show.
There is a bit of denial on pricing. I hear the growth of Hargreaves shows there is no elasticity in the market.”
Speaking about platform consolidation and growing II’s client base, Kovach says keeping retention high is key but bringing in clients’ Sipps is “ultimately the most important thing”.