Interactive Investor snaps up personal investing accounts from Equiniti

DIY investing platform Interactive Investor has snapped up Equiniti’s share dealing, ISA and SIPP accounts for £48.5million as it continues to expand to take on rivals. 

The sale process and the migration of around 50,000 customers from Equiniti’s EQi unit to Interactive Investor is expected to complete this summer, the companies said today. 

Interactive Investor chief executive Richard Wilson said the move marked ‘another important milestone’ for the company, which in recent years has added Share Centre, Alliance Trust and TD Direct customers to its stable.  

DIY investing platform Interactive Investor has bought Equiniti’s personal investing accounts

‘I am delighted to announce the acquisition of Equiniti’s retail investment business and look forward to welcoming EQi customers to the ii platform, where we hope they will benefit from our no-nonsense fixed-fee pricing, commitment to service and continuously developing technology and content,’ he said. 

He added that if Equiniti customers find that, after six months with them, they would have paid less under Equiniti’s charging model, Interactive Investor would refund the difference.

Interactive Investor customers pay a monthly fee of £9.99 that gives them access to stocks & shares ISA, Junior ISA and general trading account. Adding a SIPP costs an extra £10.

The platform, which is part owned by US private equity firm JC Flowers, currently has £45billion of assets under administration and over 350,000 customers. 

The acquisition of Equiniti’s direct-to-consumer retail customer book would increase its assets under administration to £50billion and take total customer numbers to over 400,000. 

‘Both ii and EQi’s customers will benefit from ii’s increased scale, financial strength and profitable business model,’ Interactive Investor said.

The deal will increase ii assets under administration to £50billion and take total customer numbers to over 400,000

Equiniti said it will write to customers affected in the coming weeks with more details on dates and what the move to Interactive Investor means for them.

The acquisition follows a year in which investing platforms have seen a rise in customers as those with savings and time to spare during lockdown became stock market investors for the first time.

Interactive Investor said it has seen ‘record levels’ of new customer subscriptions and asset flows, with rival AJ Bell also reporting similar increases.    

In February last year, the DIY investing platform bought rival Share Centre for £62million, following its acquisition of Alliance Trust Savings in 2019 and of TD Direct Investing in 2017. 

Interactive Investor, which is reportedly looking to list on the stock exchange, has been substantially building its business to take on DIY investing giant Hargreaves Lansdown.