James Hay  

James Hay scraps non-standard investments from platform

James Hay scraps non-standard investments from platform

James Hay Partnership will no longer offer access to non-standard investments through its platform.

The firm said in a statement the move follows an internal review and consultation with advisers.

According to James Hay Partnership, the combination of lack of demand and risk appetite has led it to review its position.

As such, the platform will continue to fulfil its obligations with regard to existing non-standard investments but the firm has decided it is not appropriate to continue allowing the purchase of further non-standard investments.

From today (9 January) James Hay Partnership will no longer allow new customers to buy a non-standard investment in a James Hay product, with the exception of Small-self administered schemes.

This will apply to existing customers from May 2017 with the exception of Ssas.

The policy for non-standard investments held by third parties, such as investment managers, is currently under review.

Non-standard investments which are included in James Hay's cull are intellectual property, land banking, overseas commercial property, peer-to-peer lending, unconnected loans - whether secured or unsecured - carbon credits, storage pods, UK unquoted shares, overseas unquoted shares, unquoted loan notes and bonds.

Also included are unregulated collective investment schemes, closed-ended investment companies not realisable within 30 days, other special purpose vehicles and pooled investment structures defined as non-mainstream pooled investments, second hand endowment policies and fractional property investments including property syndicates and other fractional ownership structures.

Gold bullion will no longer be treated as a non-standard investment in James Hay products and will continue to be allowed for new investments.

James Hay chief commercial officer, Mark Fleet, said: “During 2016 we saw a dramatic reduction in the demand for non-standard investments.

"Because of the complexity and risk in many of these asset types of investments many advisers are no longer prepared to advise on them, instead preferring to streamline their investment solutions with simpler investment propositions.

"Non-standard investments now account for less than 1 per cent of our assets under administration and this figure will continue to fall. Combined with our risk appetite for such investments, we have concluded that restricting the ability to invest in non-standard assets is a sensible course of action.”

ruth.gillbe@ft.com