By Oliver Smith on 2nd July 2019
The race is officially on.
Yesterday, just hours after MyEva launched as the first regulated digital independent financial adviser, the team at Multiply announced that they also had been granted an FCA licence to operate.
While not quite an industry-wide “first”, Multiply is the first fully-regulated consumer-facing digital independent financial adviser, as MyEva is only available via business partners.
“We’re immensely proud to be the first company to receive FCA approval to automate the full advice process,” said Vivek Madlani, Co-founder and CEO of Multiply.
“At the moment the industry is going backward, the advice gap is widening. People are ready for Multiply; a free digital-first approach.”
Multiply’s fully-regulated service will launch Summer 2019 with advice on pensions, investments, savings and insurance, all tailored to specific goals and with product recommendations.
Madlani said the company had to complete 18 months of testing and review with the FCA in order to get approval, which ensures that the algorithm is advanced enough to make calculations on a person’s situation and deliver bespoke advice.
The service was tested in 300 different scenarios and had industry specialists and paraplanners check and verify its results.
“It is extremely encouraging to see the FCA advice unit actively supporting ideas like ours. Their commitment to bringing innovative firms to market that will benefit consumers will see big societal issues like the advice gap tackled, and hopefully solved, sooner rather than later.”
Multiply’s business model will be to take a commission from some of the financial products it offers, but says this will not influence the advice it delivers.