Robo-adviser runs out of Moola and shuts its doors

The firm told its clients this morning it had "regretfully decided to close" in effect from 27 February 2020. Moola said it would close all customer accounts, and all monthly payments to the firm would stop being collected from 17 January.

The firm was founded by personal finance TV personality and Times Money Mentor executive editor Gemma Godfrey and bought by JLT Employee Benefits in July 2018.

Boring Money founder and managing director Holly Mackay tweeted correspondence from the firm, telling its customers on general investment accounts they had one option available to them: "To sell the investments into cash and return the proceeds to your nominated bank account. This must be the bank account details we hold for you. If you incur a capital gains tax liability as a direct consequence of this action, Moola will reimburse you for this upon the provision of satisfactory evidence."

Another #robo hits the skids - @MoolaTeam to close from 27th February 2019. Slow growth rates and high acquisition costs make this most fashionable sector look fragile. 2020 will see a different emerging approach to digital advice, more closures & more M&A I think. pic.twitter.com/4X8PO44fb0

— Holly Mackay (@HollyAMackay) January 14, 2020

Last May, Professional Adviser wrote an article questioning the profitability of robo-advice firms including Moola, after Investec withdrew from its robo-adviser Invest.

A spokesperson from Mercer, part of the organisation that acquired JLT last year, confirmed the decision to close down Moola.

"All existing investors have been contacted and given options as appropriate to them," they said.

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• Gemma Godfrey