Investec axes Click & Invest arm and its SIPP ambitions

Investec is to shut its direct to consumer Click & Invest online arm after operating losses topped £25m over the past two years in a move which will end the operation's SIPP ambitions too. The underlying operating loss at Click & Invest was approximately £12.8m in the last financial year after losses of £13.5m in the previous year. There was also a £6m write-off of software costs.The business was launched two years ago as a direct to consumer robo-style operation and last year announced plans to extend into the SIPP sector. The company tweeted last summer that it had plans to add a SIPP to its range of ISAs and other investment options. However mounting losses and lack of demand have forced Investec to close the whole Click & Invest operation with immediate effect from today.Existing clients will be looked after for the time being but no new clients will be taken on.The news comes as the Investec group announced operating profit worldwide of £664m although operating profit in its wealth and investment operation fell by 16.2% to £82.6m.In a statement today the firm said: “Investec Click & Invest launched just under two years ago, and we are extremely proud of the service we have provided and the consistently positive feedback we have received from clients.“However, the reality has been that the appetite for investment services such as ours remains low and the market itself is growing at a much slower rate than expected.At the same time, Investec has outlined new operating targets and strategic objectives for the group, which include a focus on improved capital allocation and cost management.“We fully appreciate that this announcement will be of real sadness to both clients and staff of Investec Click &Invest. Our prime concerns from this point are to minimise disruption for clients and ensure that employees are treated with respect and fairness.”Client investments will be moved “elsewhere” says the company and clients are being written to today to explain the options.Consultation for employees will begin shortly.Despite the problems with Click & Invest the company says it remains committed to “developing its digital initiatives.”

Investec axes Click & Invest arm and its SIPP ambitions

Related items

News from Twitter