A dealing and administration service for unit trusts, shares and gilts has been set up exclusively f...
A dealing and administration service for unit trusts, shares and gilts has been set up exclusively for IFAs by Integrated Financial Arrangements.
The group is a subsidiary of an Australian company which has developed an integrated portfolio service for its home market which now runs in excess of £1bn for 25,000 clients. It has set up a system called Transact which links to all unit trusts, Oeics, stocks on the London Stock Exchange, including investment trusts and gilts.
The aim is to build up a comprehensive dealing and reporting platform through which IFAs can consolidate all client holdings and switch between all asset classes on Transact.
Transact provides an Isa or Pep consolidation option or else a general investment account. There is an £10 annual charge for the Isa and Pep options, which includes VAT.
In the second half of this year it is going to add on personal pension, Free Standing AVC, SSAS and EPP options.
Ian Taylor, general manager at Integrated and former marketing director at AIB Govett, said: "The whole point is it makes portfolio construction plus advice happen in one place. It is not a series of products it is a single service. You have access to all three asset classes and tax wraps which makes the pricing and the convenience for both IFA and investor absolutely fundamentally valuable.
"It is truly independent. It is not owned in part by any life or unit trust company and ultimately our aim is for IFAs to own 40% of the business."
Integrated can take deals over the internet but will also deal over the telephone or face to face with intermediaries.
The group estimates it needs one client services manager for each five registered individuals, assuming each of these has 120 clients. It has four such managers at the moment.
Portfolio reports, combining all tax wrappers and asset classes on the system, are available 24 hours a day.
The service has four different commission plans allowing anything between 3.5% and 0.5% initial and renewal of between 0.55% to 1%. Integrated's charges are 0.5% initial and 0.6% annual.
For switches between funds the intermediary can take 0.8% commission and 0.2% goes to Integrated.
Integrated has negotiated a range of discounted charges on the initial and annual charges for a range of fund management groups including Aberdeen, Gartmore, M&G, and SocGen.
Taylor added the charging structure was designed to fit in with the way intermediaries were remunerated and that Integrated's charges were at least partially offset by the discounts it had negotiated off fund charges.
For Aberdeen UK Blue Chip, for example, the normal initial charge of 4.25% and annual of 1.25% are reduced to 0.25% and 0.75% respectively via the Transact system.
For more information see www.transact-online.co.uk.
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Reporting to Steve Hill
Appointed on 19 September