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Aegon in talks to drop IFDS from Cofunds

Aegon in talks to drop IFDS from Cofunds

Aegon is talking with a number of firms about changing the technology provider for the institutional business on its Cofunds platform.

Aegon completed its deal to buy Cofunds in January, and agreed to support all of Cofunds’ institutional and bancassurance clients as part of the purchase.

Yesterday (13 June) a spokesman for Aegon said that the group was now looking at partners for the institutional service but that no decisions have been made.

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“Plans are progressing well to deliver an enhanced proposition for the benefit of institutional customers,” he said.

“The service is a trading and settlement platform for financial institutions that wish to outsource dealing of funds.

He added: “The service sits well with our broader commitment to the intermediary market and we see the service as a growth opportunity. “

Technology provider FNZ is believed to be one of the providers involved in the discussions, but there are several others believed to be in the frame too..

“We’ve had discussions with a range of partners and potential partners regarding whether they can help with the upgraded Cofunds/Aegon proposition but no decisions have been taken.”

The service is currently powered by technology provider IFDS.

When Aegon agreed to buy Cofunds from Legal & General, for £140m in August last year the group had seen some significant outflows.

Mark Gregory, group chief financial officer of Legal & General, said at the time that Cofunds was at the point where it requires a “significant upgrade in technology”.

“We have concluded that this long term commitment is best achieved under Aegon’s ownership as a specialist wealth platform provider,” he said.

The sell-off included the Investor Portfolio Service platform, as well as Cofunds’ retail and institutional business.