Online equity offering service EO could provide IFAs with a new income stream as more IPOs are trans...
Online equity offering service EO could provide IFAs with a new income stream as more IPOs are transacted via the internet.
The service will allow users to view investment opportunities, apply for investments and have investments confirmed and registered online.
EO is the first online only IPO distribution platform to gain SFA approval and aims to be the premier pan-European retail distribution platform for both public and private equity issues.
John St. John, chief executive officer of EO, said the service uses the internet to overcome previous problems where most issuers did not offer IPOs to retail clients because of the administrative costs associated with, for example, sending out prospectuses to every potential buyer.
St. John added the service could provide an additional source of income for IFAs who would be offered a proportion of fees derived from new issues. He is currently in discussion with a number of IFA groups over the terms of commission.
He said: "This is a way advisers can add to their business. IFAs can either register on behalf of their customers or, if the customers is a known IFA client, commission will be directed to them."
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