Financial planning practice Symphony said it is the first IFA to white-label a new, free, non-advised digital investment management service.
The plug-and-play white-labelled solution, known as FinchTech, is the first of its kind and developed and managed by TAM Asset Management, a specialist in Discretionary Portfolio Management. It is designed to engage dormant clients lost to the Retail Distribution Review, while simultaneously enabling IFAs to compete with the growing threat of low cost robo advice.
Four mainstream investment portfolios and four socially responsible investment portfolios are available via FinchTech with equity/non-equity weightings ranging from Cautious 35/65 to Adventurous 85/15. The Adventurous mainstream portfolio returned 66.21% over a five-year period. There is no charge for the white-labelled service and FinchTech advises IFAs charge a platform fee of 0.25% to 0.50%.
Director at Symphony Ian Walmsley said: “We see the world of financial services changing dramatically and we are excited to use FinchTech for the various connections we deal with in the public and private sectors, where new clients of all ages seek financial services direct.”
FinchTech CEO Lester Petch said: “Following RDR, financial advisers have been forced to consider the position of clients that fall below a particular investment threshold. In a 2016 Association of Professional Financial Advisers report, 69% of surveyed financial advisers said they’d had to turn away potential clients in the last 12 months. These clients either remain unserved or engage with robo advisers with no long-term proven performance. Our white labelled platform can be rolled out in as little as two weeks and helps IFAs re-engage customers who have remained dormant since RDR, while fighting back against robo-creep.”
FinchTech offers white labelled general investment and ISA products and plans to launch a pension product in 2018. All investors can also participate in the ‘You Give, We Give’ scheme. The initiative provides investors with the opportunity to donate a percentage of their annual profits from their investments, to charities of their choice. FinchTech will donate an equal percentage from its total annual fees.