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Novia hits £1 billion in assets and boosts financial strength rating
by Michelle Abrego on Jan 24, 2012 at 11:32
Wrap Novia has grown assets under management to over £1 billion and had its financial strength rating upgraded on the back of breaking into profitability and last year’s tie up with life company Aegon.
The Bath-based wrap improved its financial strength rating issued by actuaries AKG from a B- to a B.
The rating figure is based on analysis of operational appraisals, financial appraisals, consumer focus, and other analysis of services, processes and distribution.
The platform launched in October 2008 was pushed into profitability in May 2011 after teaming up with Aegon to provide administration for the life company’s at-retirement and workplace savings platform.
Growing importance has been attached to platforms’ financial strength after a series of high profile departures from the platform market over the last couple of years, most recently Macquarie.
Novia chief executive Bill Vasilieff (pictured) said that despite platforms with large parent companies performing well in financial strength ratings, historically it had been these types of platforms that had exited the market.
‘It has been the larger firms who we have seen pull out of the market, with the smaller, more agile platforms, able to quickly adapt to the changing market conditions and the new adviser landscape in the shape of the retail distribution review, who have continued to grow and flourish in the market.’
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9 comments so far. Why not have your say?
Devils Advocate1
Jan 24, 2012 at 11:45
Bravo to Novia.
Their completely transparent flexible and IFA focussed offering is refreshing and with no 'closed club' for IFA owners only.
With RDR what you offer us IFAs is fantastic. Well done and thankyou.
report thisStevie Boy
Jan 24, 2012 at 11:59
Have to say, what I have read and heard so far has been broadly positive. Anyone use Novia and in a position to comment further?
report thisDevils Advocate1
Jan 24, 2012 at 12:36
there is none of this nonsense that you have to cough up £15k or whatever, to join the club. Completely transparent and flexible. We like Transact too..
report thisBert Poppins
Jan 24, 2012 at 13:08
Obviously great news to see another profitable platform however there is a strong qualification about how much of these earnings are as a result of the Aegon tie-up. Novia could for all intents and purposes be a life company subsidary and therefore the same old issues apply.
My question would be what happens if Aegon decides it is not for the UK or the platform market as it cannot capture enough assets. Its much vaunted corporate platform is still a work in progress and intiial pricing would show it to be well off the pace.
Congratulations for achieving profit but at what cost?
report thisBert Poppins
Jan 24, 2012 at 13:34
@ Devils Advocate 1 - judging by the bitterness (not to mention incredibly unsubtle self-promotion) in your comments whoever has tried to charge you £15k had a good point and probably too generous in their entry fee.
report thisOldskoolAdvice
Jan 24, 2012 at 13:58
Bravo indee, DA1. Aegon doing a great undercover job of clinging onto as much control of the advice process as possible. Big well dones to them. And, big well dones to me and you too, of course, for helping them. #oldskoolforever
report thisTim Page
Jan 24, 2012 at 14:02
£15,000 initial investment to make sure I get the best deal available for my client is money well spent.
It is a conflict of interest that is easily identified and managed - unlike many of the other conflicts of interest / inducements on offer in the platfrom space.
report thisBert Poppins
Jan 24, 2012 at 14:14
Like with many things in life - whether you have to pay for it or not, it is whether all parties are satisfied at the end of it that is important.
report thisKen Taylor
Jan 25, 2012 at 09:10
Good to read some positive comments for a change. The Novia offering is excellent and I would commend it to any adviser who has yet to fully embrace the challenges posed by RDR.
The only disappointing comment for me is the suggestion that in some way Novia ispartially owned by Aegon. This is completely misplaced, as Novia is privately owned and funded. So any suggestion that potential users might be daling with a life office subsidiary are wide of the mark.
I believe Novia will gather momentum going forward, and deserves to as its breadth of offering, ease of use, complete transparency of charging structure and positive attitude of staff all combine to make it worthy of serious consideration by any forward lookig advisory firm.
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