Allfunds is to offer ETFs on its platform for the first time on 1 June, as it adds products from passive providers iShares, Lyxor, Source and Deutsche Xtrackers.
The firm said the move is part of their digital strategy and will help wealth managers align with MiFID II when it comes into force next year.
Wealth managers will be able to use standardised processes for all ETFs and mutual fund transactions through their existing reporting and custody frameworks. In addition, existing funds' services will reinforced with ETF-focused services such as execution, reporting, information and research.
Allfunds has also agreed with ETF providers to offer educational programs.
The firm hopes the distribution of ETFs into the retail market will be enhanced as Allfunds will offer fractional dealing - enabling those to invest with smaller sums of money.
Juan Alcaraz, CEO of Allfunds, said: "Allfunds is always working to lead the development of open architecture in the funds industry. We therefore identified the demand and requirements for the distribution of ETFs for financial distributors and ETF providers.
"Buying an ETF in the stockmarket is one thing, incorporating ETFs in the wealth management industry's current distribution framework is a completely different matter.
"We therefore believe that our ETF service position is unique and brings a new dimension to ETF distribution both for wealth managers and their retail investors."
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