Standard Life’s advice arm 1825 has joined the Financial Conduct Authority’s (FCA) regulatory sandbox to develop an at-retirement automated advice proposition.
The FCA said 1825 intends to generate automated advice that “considers how to meet the needs and aspirations of consumers using their available liquid and illiquid assets”.
A spokesperson for 1825 said: “We’re really pleased to continue to be part of this productive exchange with the FCA on this important and developing area.
“This is a natural progression from our involvement with the Advice Unit, looking at how technology can be used alongside existing models to help people have the support they need in planning their life savings.”
Standard Life’s automated advice efforts will be joined in the watchdog’s development space by start-up Multiply, which is looking to create a service that “combines financial modelling and machine learning to provide holistic financial plans with specific product recommendations directly to consumers”. Multiply, founded in 2016, reportedly secured £1.75m worth of funding last month.
A total of 29 firms were accepted into the FCA’s technology development space in its fourth set of entries. It said it received 69 applications for the latest set of entries.
The fourth cohort brings those to have entered the regulator’s sandbox programme up to 89. This includes the likes of Nationwide, which is also developing an automated solution to provide “digital savings guidance and investment advice”.
Some 60 firms have already been accepted into the regulator’s sandbox programme, including the likes of Nationwide, which is developing an automated solution to provide “digital savings guidance and investment advice”.
The FCA’s regulatory sandbox allows firms to test their ideas and innovations on consumers in a safe haven without fear the regulator will pursue or punish them if something goes wrong.
To be accepted within the programme, firms have to comply with a number of criteria, including scope, genuine innovation, consumer benefit, need for immunity and readiness for testing.
The FCA last October said a number of the financial management and savings tools developed in the first 12 months of the sandbox had the potential to improve consumer spending and savings behaviour, although it did not name the firms proven to be successful in this area.