Informed Choice managing director Martin Bamford has closed the advice firm’s direct-to-consumer proposition, IC Direct, to new business because its pricing terms had become uncompetitive.
In a note on the IC Direct website Bamford says the firm, which has operated a clean pricing structure since it launched in April last year, is no longer able to compete with the established D2C players.
Bamford says: “Following the recent announcement of new pricing structures from several leading investment platforms, we have carried out a review of our own pricing terms.
“We launched IC Direct last April, after more than a year of development, with a competitive and innovative charging structure. IC Direct was one of the first platforms to offer a clean pricing structure, at a time when our competitors presented a bundled annual management charge using rebates and commissions.
“As the rest of the market is moving to the clean pricing we originally adopted, we have concluded that our original pricing terms have become uncompetitive. Because we are a new entrant to the market without the scale to negotiate improved terms with our partners, we have decided to close IC Direct to new business.”
Bamford says existing customers can continue to access IC Direct and can transfer to alternative providers at no cost.