Sipp provider Embark has promised its new investment platform will charge 'high street prices' to advised clients.
As part of a launch deal Embark clients who sign up before the end of 2018 will be charged 15 basis points (bps) for investing in a general investment account (GIA) or an ISA.
Third party investment accounts, which allow advisers to move a client’s existing assets within a tax wrapper onto the Embark platform, will also be charged at 10bps during the offer period.
Clients investing through a Sipp will be charged an extra 10bps.
The discounted prices will continue to be offered to clients who sign up before 31 December 2018 even when they open a new product.
After this offer period ends the following charges will apply:
- Third party investment accounts - 15bps, reducing to 10bps for larger assets
- Sipps - 27.5bps, reducing to 20bps for larger assets
- ISAs, JISAs and GIAs - 20bps, reducing to 15bps for larger assets
Phil Smith, chief executive of Embark, said the platform's high street prices' were designed to ‘materially disrupt’ the platform market.
‘The Embark platform is set to materially disrupt the current platform market. It will enable financial advisers to address the advice gap through cutting edge, highly reliable technology,’ he said.
The company stated its new platform, which has ‘pension functionality at its core’ is targeting individuals with between £25,000 and £150,000 to invest.
Smith said Embark is looking to pass value back to all clients.
‘At the centre of what we are trying to achieve is a goal to pass “value” back to consumers, whether they come as intermediated, execution only, robo or fully advised clients.
‘Our role is to provide low cost, high value technology, delivered as part of a wider value proposition.
‘At launch we are clearly focused on those individuals with between £25,000 to £150,000, and helping them access advice and excellent investment services at the high street prices that they can afford,’ he said.
The platform sits on FNZ technology and will soon be used by Scalable Capital and Moneyfarm. Embark said it has plans to work with more robo-advisers.
It is open architecture and will soon offer model portfolios from investment managers including BlackRock. Embark said the platform ‘will not be used as an opportunity to push the group’s own investment products’ and offers over 4,000 mutual funds and securities and around 3,000 exchange traded funds.
Clients on the Avalon platform, which Embark acquired out of administration in 2016, have been transferred over to the Embark platform.