Paradigm founding partner Anthony Morrow has teamed up with Moneysupermarket.com co-founder Duncan Cameron to launch a robo-advice service.
The Telegraph reports the pair plan to launch the eVestor service next year and will charge customers 0.44 per cent. Of this, 0.35 per cent will go to portfolio management and 0.09 per cent as a fund charge.
There will be seven passive model portfolios, with investments either held in trackers or exchange traded funds.
Morrow will be chief executive of the business. He told the newspaper eVestor will target both first-time investors and savers who want to keep their pension pots invested during retirement.
Morrow says: “Our proposition will offer a cost-effective solution to savers of all ages who do not mind not receiving face-to-face advice.”
Cameron added: “While I have come across many attractive business opportunities over the last decade, nothing has grabbed my interest and attention quite like eVestor. The proposition we are putting in place has the potential to revolutionise investment advice for the benefit of consumers in the UK.”