AJ Bell has bought Adalpha, a start-up company developing a mobile platform proposition for financial advisers, for an undisclosed fee.
AJ Bell said the acquisition was focused on improving its service to financial advisers, rather than its D2C proposition.
The platform business, which has £55bn assets under administration between its adviser and D2C platforms, said Adalpha's "simplified proposition" has the potential to complement its existing adviser platform business. There is no current launch date for any technology but, post-launch, AJ Bell said clients will not be able to open an account without a financial adviser.
Our vision has always been to develop technology that helps financial advisers service a greater number of clients."
AJ Bell has said there will be no "robo-advice" functionality, nor is there any intention to add "direct-to-client advice" or guidance functionaility in the future.
AJ Bell said all of Bristol-based Adalpha's 18 staff, which PA understands contains a number of former Parmenion employees, will transition to the AIM-listed platform business as part of the deal, remaining in its current office in the South West.
Dave Tanner, chief executive of Adalpha and former chief operating officer of Parmenion, said: "Our vision has always been to develop technology that helps financial advisers service a greater number of clients. Advisers should have the choice and capability to deliver their service remotely or face-to-face. As part of AJ Bell, we will be able to further develop our mobile led services and help increase clients' engagement with their adviser."
AJ Bell chief executive Andy Bell added: "Financial advisers need a variety of propositions to match a diverse range of client needs. The Adalpha team are working on a simplified, mobile focused platform service that will broaden our offering to financial advisers and help them service a wider base of clients."
Earlier this week it was revealed Baroness Helena Morrissey was quitting SJP to succeed Les Platts as chair of AJ Bell at the firm's next annual general meeting, scheduled for January 2022.
She said: "I've long admired AJ Bell and its commitment to helping people to invest. Its low cost, easy to use investment platform is exactly what people need to help them start their investing journey and build financial security for themselves and their families.
"The business is growing quickly and I'm looking forward to joining the team to help build on that success and shape the future direction of the company."
First published by our sister title Professional Advisor