PlatformsOct 6 2015

Nutmeg makes £5.2m loss ahead of advice move

twitter-iconfacebook-iconlinkedin-iconmail-iconprint-icon
Search supported by
Nutmeg makes £5.2m loss ahead of advice move

Nutmeg has reported a £5.28m loss for 2014, up from the £3.6m loss reported for 2013, it annual results revealed.

Nick Hungerford, chief executive and founder of Nutmeg, said that last year the business closed a significant funding round to support increased investment in marketing and product development.

He added significant investment continued to be made in infrastructure so that the business can scale cost-effectively to deliver long-term profitability.

Back in August, Nutmeg announced it was set to move into providing financial advice to its growing customer base, with a search starting for the advisers to help provide the new service.

“They (advisers) will almost be like research agents. We are not following the old fashioned face-to-face model, although advisers will be available to meet customers if they wish,” explained Mr Hungerford.

This will mean no geographic constraints, with the firm building on its existing online functionality and digital expertise, he added.

Last month Nutmeg hit back after Gina Miller, founder of investment manager SCM Group, said the business was already giving advice.

Mr Hungerford said his business is a discretionary investment manager that does not currently give investment advice.

He said: “The customer chooses one of ten portfolios, depending on their attitude to risk, contributions and time horizon.

“We are in regular correspondence with the FCA to ensure we remain within their regulatory permissions and they are fully informed about what our current offering/position is.

“We have recently announced that we will be increasing the scope of our services to include financial advice. This new stage in our development will enable us to help a wider range of people with a broader range of questions.”

Ms Miller added that the minute a firm makes a recommendation or sends a suitability report and letter, “and one is generated off your website through a series of questions, that is advice”.

emma.hughes@ft.com