LV has taken a majority stake in UK-based automated advice firm Wealth Wizards, increasing its capital to allow the development of its white-label algorithm based platform.
The deal will also see LV’s in-house regulated telephone retirement service Cora using Wealth Wizards’ advice platform to generate personal advice for pension savers planning for retirement.
The remaining shares are still owned by Wealth Wizards’ founding management team and the business will continue to operate its independent financial advice service, focused on developing low-cost advice solutions for the workplace market.
Andrew Firth, chief executive of Wealth Wizards, said the deal marks a milestone in the firm’s development of digital advice solutions.
He said: “Cora breaks new ground in the implementation of so called ‘robo-advice’ in the UK market and LV’s investment will enable Wealth Wizards to continue to pioneer the development of innovative advice products.”
Richard Rowney, managing director at LV, said: “The way people fund their retirement is changing and so is the way that people access their savings and this deal is a great opportunity for us to support the development of digital solutions to meet the evolving demands of retiring consumers.”
Earlier today (3 August), the government and regulators launched a review to examine how to plug the advice gap, with so-called robo-advisers being one of several areas under the spotlight.
FTAdviser has previously reported on the rise of artificial intelligence-based advice tools in the UK, with experts suggesting that they can be a valuable addition to the service offered by advisers, despite the perceived threat that it allows product providers and fund managers to go direct to consumers.