Introduction

Dear Adviser,

We are receiving excellent feedback on our approach to cash interest. “Something in your recent update blows my mind – ‘the average portfolio with Transact is valued at ~£235k, has 6.49% invested in cash and is earning ~4.01% per year. This equates to a yield on the entire portfolio of 26bps. This is greater than the 24bps revenue yield Transact earn!”. Many advisers describe this as an offset against Transact fees.

As interest rates continue to climb, remember we use five banks (soon to be six) with solid credit ratings and manage cash actively across the banks as a good treasurer should (to avoid the inertia exploited by retail client banks). We pay your clients one of the highest rates of interest available on cash in the UK because, unlike many of our competitors, we do not skim. This is in support of our strong belief that we should do the right thing and provide clients with excellent value for money. We paid 4.0058% p.a. as at the end of May. The rate we paid clients in June will be published on TOL in the second week of July.

As we progress on our way through our digitalisation program and aim to build back better, we have done more to improve your transfer experience. Following the introduction of our transfer tracker we are now pleased to share that Guided Applications can now be used for existing Transact clients for transfers of all adult client ISAs (to our full range of Cash & Investment ISAs and LISAs) and pension wrappers.

This reflects our continued investment in functionality that builds on the developments we have made in the past to make financial planning easier. For example, later in this Adviser Update, we remind you of:

Our share class conversion tools and the benefits to customers.
The ability to preserve units in a pension wrapper by using TOL to “sweep income” and take it as a withdrawal.

Consumer Duty is very much on the horizon. The full rules come into effect from 31 July with platforms, advisers and firms showing different levels of preparedness. As we have a responsibility to ensure that clients receive value for money, in this month’s issue we share a summary of our Consumer Duty activity.

Thank you to those who attended our Leeds and Durham Connect events. We certainly enjoyed the events and hearing about your businesses and the various challenges and opportunities you face. Connect Events start back after the summer break in October. This is a great opportunity for me to meet with you and discuss future Transact strategy and functionality. It is also a chance to meet the operational staff who service your region in person. We believe passionately in service and building firm and supportive relationships and we want to invest time across all levels of Transact to understand your business and build back timely proactive service. Please do join us at an event near you later in the year.

Thank you for your continued support.

Kind Regards,

Jonathan Gunby

Chief Executive Officer,
Integrated Financial Arrangements Limited (Transact)

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