JP Morgan is to stop offering third party funds on its execution-only platform JP Morgan Wealth Manager Plus.
The move takes effect in March and reduces the number of funds available on the platform from 800 funds across 30 asset managers down to less than 100 JPM Oeics and investment trusts.
The firm says it has made the decision because most clients who use Wealth Manager Plus want to access JPM products with only around 2 per cent of clients holding third party funds.
Clients currently invested in third party funds will be able to continue to hold them but will not be able to buy more unless they have a regular savings plan in place before March.
Figures from The Platforum show JPM Wealth Manager Plus currently has around £2.6bn assets under administration, representing around 3 per cent of the direct platform market.
A JPM spokeswoman says: “Essentially, what we have found is when people come to us to use Wealth Manager Plus they want to use JPM funds and it is a very small percentage of customers that use third party funds.”
The Platforum head of direct Jeremy Fawcett says: “JPM Wealth Manager Plus was the most radical platform play from a fund manager in recent years and while it signed up some new, younger clients the principal job of shoring up the legacy assets did not require the open architecture element.”