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IFDL to sell D2C arm

MS Awards 2010

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 today confirmed direct fund supermarket business is not part of its ongoing strategy.

It adds the move will eliminate any conflicts of interest with its adviser-facing business.

Fundsdirect launched in 1999 and has £23m 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 RDR but it is ultimately at odds with our ongoing strategy which is to focus on intermediaries. Obviously 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 is currently setting up a service which will allow advisory businesses to white-label the platform and offer their own non-advised proposition.

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Comments

There are 3 comments at the moment, we would love to hear your opinion too.

  1. Are now I see it. They are offering white label and want to buy adviser business by no longer dealing direct. So the old cozy relationships will continue. The umbilical cord hasn’t been broken. Commission now relabeled as CAR and investors forced to deal thru an “adviser” one way or the other if they want to deal with IFDL. Hardly the outcome RDR was supposed to achieve.

  2. At least they are being honest and focussing on their core market.

    When, I wonder, will Skandia announce their D2C offering. Not long me thinks and what effect will that have on your clients????

  3. John Blackmore 29th July 2013 at 2:20 pm

    @ Skandia Man – If/when Skandia offer D2C it will have no effect on the clients of advisers who get paid for giving advice. Those who are still product based may well suffer.

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