18th May 2016 09:45
LONDON (Alliance News) - Jarvis Securities PLC on Wednesday said it has signed a non-binding heads of agreement with an unnamed financial services company to launch a new automated wealth management service on behalf of a third party, also unnamed.
Jarvis, stock broker and financial administration services provider, said it will provide administrative services including account opening, maintenance and trade settlement.
Jarvis said it is currently intended the service, subject to a formal agreement being sealed, will start in 2017 and the arrangement will continue for at least three years.
The company estimated it will make GBP277,500 in revenue in the first year of the service, rising to GBP943,750 per year by the third year. Should the contract continue beyond the third year, Jarvis estimated revenue for the fourth year would be GBP1.7 million.
"This is an excellent prospect for Jarvis. The automated wealth management market presents huge opportunities in the post [retail distribution review] world, and perfectly complements the administrative service we offer," said Andrew Grant, managing director of Jarvis Securities, referring to recent UK regulation governing how investment advice is paid for.
"We see this as a growth area in the future and are pleased to have the opportunity to work with this client," he said.
Jarvis shares were up 0.7% to 343.00 pence Wednesday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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