"Showtime" as "big majority" of Wealthsimple UK investors migrate to Moneyfarm
In December last year, it was revealed the Canadian robo advisor Wealthsimple was exiting the UK after four years to concentrate on its home market. Moneyfarm acquired its 16,000 UK clients and will now migrate them onto its platform.
A "big majority" of Wealthsimple's 16,000 UK clients acquired by rival Moneyfarm are moving across to the digital wealth manager later this month in a migration dubbed "showtime".
Rival digital wealth fintech Moneyfarm acquired Wealthsimple's 16,000 UK customers and £272m in client assets.
The migration of clients between the digital wealth managers is set to take place later this month.
Speaking to AltFi, Chris Rudden, investment consultant manager at Moneyfarm, deemed the migration "showtime" but is confident it should be a smooth process.
"The big challenge is obviously on the technical side," he said.
"Just trying to migrate this number of clients, trying to make sure the clients aren't out the market for particularly long.
"Essentially, just try to make sure the transition is as smooth as possible for the clients. That is the key challenge.
"A lot of planning has been done and now it's showtime."
He said migrating clients was a balancing act.
"[We will] try and move the money over the weekend to minimise the time out of the market and then try and trade in the portfolios on the Monday.
"You want to make sure it's as quick as possible for clients but obviously you want to make sure there are no hiccups."
Rudden said a "big majority" of WealthSimple's 16,000 UK clients are migrating across to Moneyfarm, but wouldn't be drawn on a specific figure of how many weren't.
"We are very happy to say that a very big majority has come across," he said.
Key to the process, he says, is trying to make Wealthsimple clients feel like they "chose to come to Moneyfarm", he said.
The process was helped, he said, by hosting client Q&A events and giving Wealthsimple clients a long notice period.
"In terms of the peers that we have in the marketplace, Wealthsimple and ourselves are the most similar," he said, pointing to the pair's similar blend of human and tech client services.
There are "small" differences in management fees and also the degree to how actively the digital wealth managers manage their investment portfolios.
To minimise disruption, Rudden said, Moneyfarm has pledged to match Wealthsimple's client fee for 12 months should it be more expensive.