Introduction

Dear Adviser,

We are seeing very positive progress in many areas across Transact. This ranges from our work on digitalisation through to recruitment and our re-vitalised training and development programme. We were delighted to see our performance summarised in the recent Platforum adviser survey which recorded that Transact’s primary users have the highest satisfaction rating of any platform at 91%. In this year’s Investment Trends Adviser Technology & Business  Report Transact came second overall and, using platform size from Fundscape data May 2023, Transact has the highest rating of any large adviser platform (>£25bn FUD). Whilst our service in 2022 was not at the level we strive for, I do hope that your experience in 2023 is better.

Client Operations continue to improve with 96% of all tasks now processed within three days. We also welcomed 16 new Client Operations staff last month which now means that this area has its highest ever staff numbers. This increase in headcount, combined with high levels of staff retention, is driving our return to great service.

We are building back better solutions rather than simply repeating what we have done in the past. One such example is around transfers where turnaround times continue to fall. A summary of the current transfer times you can expect, a summary of our current transfer initiatives, plus best practice tips to follow when submitting a transfer are detailed in section 3.

As interest rates rise you will have seen many more reports on the different approaches platforms are taking with client cash. One platform recently reported profit of £24m from their clients’ cash alone. Our approach is different. We think that it is wrong to skim client interest – this is an investment return just like a dividend or distribution – and so we pass on all interest to clients for (instant access) pooled cash held on Transact. The current rate (as at the end of May) is the equivalent of 4.0058% p.a. At the time of writing, this is probably the highest rate among investment platforms and provides a much better consumer outcome. 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. So an incredibly positive consumer outcome, one of the standards the Consumer Duty rules aim to deliver. You can read more about Consumer Duty and our approach to interest rates in section 4.

Staying on the subject of cash, applying for term deposits on the platform is very straightforward as you can apply on your clients’ behalf. Rates open to subscription on TOL are now at 5.4% p.a. (for 3-year terms). Our usual summary of cash and term deposits available on TOL are shown below in section 11.

Thank you to those who attended our Solihull and Gatwick Connect events and for the positive feedback you gave us. Our next Connect events for June take place in Leeds and Durham. You can hear about our latest significant developments and initiatives, such as the removal of more paper forms, improved transfers handling and reduction in turnaround times, and enhancements to our complaints process. Please do join us at an event near you.

The Schroders UK Platform Awards 2023 are now open for votes and we would appreciate it if you could take the time to provide feedback on the platforms that you use here. It should take just 3-5 minutes and the closing date for votes is 28 July. Platforum have shared their quarterly survey here with the chance to win a £50 amazon voucher.

We have also been shortlisted for Best Wrap/Platform and Best Investment Service in the Life & Pensions Moneyfacts 2023 awards. The first stage is voted for by advisers, before a panel of judges assess who should win. The results are announced at an event in September.

Thank you for your continued support.

Kind Regards,

Jonathan Gunby

Chief Executive Officer,
Integrated Financial Arrangements Limited (Transact)

1. Introduction
2. Transact Online (TOL) – Recent Enhancements
3. The Year of the Transfer
4. Consumer Duty & Cash Interest
5. How to Make Your Business as Fit as a Fiddle
6. Share Class Conversion
7. Transact- BlackRock MPS Update
8. Adviser Succession Planning
9. Strategy Changes for Pension Planning Following the Budget
10. Fund Changes
11. Interest on Cash Deposits
12. Transact Events 2023