Online investment adviser Money on Toast has outsourced its administration to Equiniti and claims that as a consequence clients will see a fall in investment fees due to eliminating “external platform costs”.
Money on Toast, who claims to the first user of Equiniti’s new ‘wealth solutions’ outsourcing platform, will continue to provide all client facing services through its algorithm-powered service, including risk profiling and investment recommendation processes.
However, Equiniti will now undertake all investment administration, including regular portfolio rebalancing and technology services.
Charlie Nicholls, founder of Money on Toast, confirmed to FTAdviser that the move means it will no longer use FundsNetwork and Cofunds as external platform providers.
The efficiencies created will mean a reduction of investments fees for clients due to the elimination of external platform costs, the firm said, as well as providing access to a wider range of investment options, including exchange-traded funds.
Mr Nicholls said: “As the leading algorithm-based advice and discretionary management system we have always prided ourselves on innovation, and see outsourcing as one of the primary ways in which we’ll retain our market leading position.
“Further, Equiniti Wealth Solutions is not only suited to our online service. It will also be adopted by our parent company CPN Investment Management, which applies a more traditional wealth management model, in the near future.”
Mark Taylor, managing director of Equiniti Investment Services, added: “We have poured the utmost energy and passion into developing this service, which we see as a game changer for wealth managers and stockbrokers in a highly competitive landscape.”
peter.walker@ft.com
