The TEP Exchange, which provides an automated system for matching up endowment policy market makers ...
The TEP Exchange, which provides an automated system for matching up endowment policy market makers and advisers, goes for an IPO on Aim this month.
The company has already got links with a handful of market makers, although it does not have the backing of the whole industry, many of whom feel that it may reduce margins on sales.
More than 5,000 intermediaries have registered with the company, and in the last few weeks a client section of its website has been established. This allows a potential seller or buyer of endowment policies to get a quote online before being directed to a list of recommended advisers to complete the deal.
The company provides an electronic exchange that uses internet technology to create an online supermarket for buying and selling endowment policies.
The development and full testing of the trading platform has cost in the region of £4m and the company hopes it will transform what was a slow, manual process into a speedy electronic one.
The TEP Exchange claims this makes it easier for sellers, buyers and advisers to obtain the best price from the system in real time.
Market makers who trade in endowments have seats on the TEP Exchange and submit their buying criteria and valua- tion intelligence to the TEP Exchange 'match engine'.
Advisers whose customers want to sell their endowments have access to the exchange via the web and can obtain the best price on the exchange for their clients.
Putting the tech into protection
Square Mile’s series of informal interviews
Fallout from Haywood suspension
Launching later in 2019
£80bn funds under calculation