Embark wants its platform to help advisers to deliver a ‘cost-effective service’ to mass affluent consumers, helping them to provide for their retirement.
The platform is particularly aimed at helping consumers in drawdown looking for the flexibility of automated income options with low charges. It also caters for clients in the accumulation phase.
Alongside a personal pension, the platform provides access to other investment accounts including ISAs, Junior ISAs (JISA), general investment accounts (GIA) and third party investment accounts (TPIA).
Embark says costs will be as low as 10bps for TPIA services. In addition, during the launch period initial costs are discounted to a flat 15bps regardless of the size of assets invested, for GIA and ISA-based services.
Embark is active in SSAS, SIPP, investment wrap, fund research, employee benefits consulting and Chartered Financial Planning through RCL Consultancy. Embark is privately owned and employs 525 people in eight businesses in six office locations.
Phil Smith, chief executive of Embark, said: “The Embark platform is set to materially disrupt the current platform market. It will enable financial advisers to address the advice gap through cutting edge, highly reliable technology.
“There has never been a greater need for financial advice, although in recent years access to ‘full fat’ human advice has largely become the domain of the more affluent. This ‘advice gap’ is amplified by pension freedoms. Even though an individual’s decision to access their pension savings is one of the most complex they will make, according to the Financial Conduct Authority (FCA), less than a third of savers and investors are taking any professional advice.
“It largely boils down to cost. Financial advisers find it difficult to profitably service those with limited assets. Recent research indicated that 69 percent of advisers have turned away potential clients in the past year.
“To address this issue, the recent Financial Advice Market Review called for “new and more cost-effective ways of delivering advice and guidance to consumers. The Embark Group has stepped up to the plate and developed a new low-cost open architecture platform to help advisers fill the advice gap.”
“Our role is to provide low cost, high value technology, delivered as part of a wider value proposition. At launch we are clearly focused on those individuals with between £25k to £150k, and helping them access advice and excellent investment services at the high street prices that they can afford.”
The platform makes extensive use of straight-through processing to automate most processes and deliver efficiency for advisers and consumers. It also provides real-time transactions, requires no ‘wet’ paper signatures, and supports users via online chat, phone and email. Platform implementation is provided alongside a nationwide team of business development managers.
The platform offers access to over 4,000 mutual funds and securities and around 3,000 exchange traded funds (ETFs). The platform will also soon offer a wide range of model portfolios from recognised investment managers, including BlackRock.