Execution-only broker TD Direct Investing has been granted regulatory permissions to provide non-personal online ‘advice’, which will allow it to develop model portfolios and other tools for those less engaged investors.
Speaking to FTAdviser, the firm’s head John Tracy explained that after an “appropriately onerous process” they received Financial Conduct Authority permissions to provide customers with non-personal, online advice.
TDDI can now provide a wide selection of additional support services and tools to customers, including a shortlist of recommended funds. The Financial Services Register says the firm is not allowed to provide personal recommendations.
“Building on this, our future focus is to continue investing in the infrastructure, tools and solutions - to support both the DIY investing audience and our more sophisticated trading customer,” he stated.
“We have a selection of tools in development to help customers make better investing decisions, in the short-term these will include simple risk-rated funds and propositions for less experienced DIY investors – progressing to model portfolios and more sophisticated solutions.”
Also in February, the firm eliminated all fees for exits and transfers, simplifying its pricing structure as part of a strategy to differentiate itself in an already crowded direct tot consumer platform space.
Mr Tracy mentioned that along with fair prices, customers also want transparency, which is why TDDI partnered with Morningstar to develop research tools that investors can use through the website, giving more of a “third party view”.
To further capture the more middle market and often younger customer, the firm also invested heavily in technology, both the “bumpy ride” to solidify back office infrastructure as well as in trading apps which are enhanced for mobile phones and tablets.
“Throughout 2015 a large selection of upgrades are scheduled to design, navigation and features are planned,” said Mr Tracy. “These will provide an enhanced experience that supports our customers investing needs – on the go.”
Last summer the North American banking parent TD Bank Group completed the acquisition of its remaining interest in Natwest Stockbrokers from National Westminster Bank for an undisclosed sum, paving the way for the TDDI business to grow into the UK advisory market.
The share dealing and investing subsidiary had previously partnered with Natwest for 12 years, providing stockbroking services to Natwest and Royal Bank of Scotland customers under the Natwest Stockbrokers and RBS Direct Trader brands.
peter.walker@ft.com
