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Transact platform assets drop after client closes account

Chief executive says the platform still plans to float on the London Stock Exchange in early 2018

Transact managing director Ian Taylor

Transact’s platform assets dropped by 1.8 per cent in the second quarter of the year after a private client closed their account.

Transact chief executive Ian Taylor told Money Marketing he could not name the client, but said it was not an adviser firm and the funds were not shifted to another platform.

He says: “It was a single private client who is known to the company and has taken his account away from us.

“It has not had a real effect on our business because we were only charging a nominal account [fee] for custody. It is not a normal run of the mill business account.”

Taylor says outside of that account, inflows and outflows were steady on their first quarter performance. Assets on the platform, which Transact reports as funds under direction, dropped from £27.2bn to £26.7bn.

Taylor says plans remain on track for the business to float on the London Stock Exchange in early 2018.

He says: “Given that Q1 and Q2 have been two of the best quarters we have had, we are looking forward to Q3 and Q4.”

A letter sent to shareholders of Transact’s parent Integrafin Holdings in December 2016 said inflows for the year to September 2016 were £3.58bn, which was a 6.6 per cent increase on the £3.36bn inflows at September 2015. Net flows for that period rose 7.8 per cent to £2.2bn from £2.06bn the year prior.

Top industry heads will be discussing the future of platforms at the Money Marketing Interactive conference, which is being held at the Majestic Hotel in Harrogate on 14 September. To join over 100 advisers and register to secure your free place, click here.



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There are 9 comments at the moment, we would love to hear your opinion too.

  1. I wish I had £500 million pounds!

  2. Hardly a news item of seismic significance.

  3. This looks like an institutional client. Any private client with that amount of dosh would probably be with someone like Goldman Sachs and pretty certainly not with Transact.

  4. Whilst the drop warrants interest and data protection limits comment, this will have essentially no impact on turnover given the nature of the arrangement.

    I’m very sure profit growth will increase substantially in both real and % terms leading up to the IPO.

  5. I am not surprised by this, we have removed all of our clients from Transact because of their appalling administration – a 98% error rate over the last 5 years is completely unacceptable

    • That’s funny, about the only errors I’ve known to be made on Transact have 98% been errors at our end or our own making! The 2% we might actually be able to put down to them haver invariably been picked up and corrected before we’ve even identified a problem ourselves.
      One of (if not)the best providers we’ve used since 1992….

      • And I am not a Transact shareholder and I do use other WRAPs/ providers where mroe suitable for certain market segments and to compare them against in the same segment periodically, not just relying on research systems asnd ratings.

  6. This has been explained already by Transact. It was 1 individual whom had a special fee deal for a large chunk of money. That money has gone. Nil to see here. Move on.

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