A prominent Turkish family, which took over legendary investor Nils Taube’s boutique, has shelved plans to transform it into a robo-advice company.
Wealth Manager understands MyInvest, the online investment manager that was in development stage and was due to launch last year, has now been placed under strategic review.
According to filings at Companies House, the business, backed by Kasim Garipoglu, has withdrawn its application to the Financial Conduct Authority (FCA), closing its doors before it could even attempt to crack the increasingly mainstream market.
The news comes after Wealth Manager revealed that a robo firm called Wealth Builder - which had promised a customised portfolio within 15 minutes - abandoned plans to launch in the UK citing 'a number of similar propositions that are on the market'.
Garipoglu, a Turkish businessman, and corporate entity MyInvest bought Nils Taube Investments on 9 December 2015 and renamed it GKAM. The company subsequently applied to the FCA to vary its permissions in order to offer a digital investment management proposition.
However, it later decided to withdraw the application in order to conduct a ‘comprehensive review of the firm’s business and its future direction’.
The directors pointed out in its latest accounts that there is the possibility of making further acquisitions. However, until a decision is taken, the company has ceased trading. A loss of £161,243 was posted for the 12-month period to the end of March 2016.
The accounts state: ‘The members are currently exploring the future direction and opportunities for the LLP and the LLP will remain inactive for the time being. While the LLP is inactive the members are committed to providing funding to meet the capital requirements and obligations of the LLP until the future direction of the LLP has been determined.’
MyInvest, which is the trading name of GKAM, is owned by Garipoglu, who is also a shareholder in GKFX, an FCA regulated retail forex and CFD broker. The firm raised £6.5 million back in November for its UK expansion plans.
Wealth Manager first revealed that MyInvest was being set up by former MoneyFarm director Hasan Sabri in February 2016. The platform was supposed to target both direct and adviser channels, alongside offering a range of products from savings wrappers to pension products.
It appears now that Sabri has also left the company.
MyInvest directors could not be reached for comment.