Wealthsimple are planning to shut up shop in the UK, what do you think of their plans?

07 December 2021

Question by Rosemary

Wealthsimple are planning to shut up shop in the UK, what do you think of their plans?


Answered by Holly Mackay

Hi Rosemary

We have seen a few robo advisors over the years who have closed their doors in the UK because the economics of attracting new customers who have typically smaller balances just don’t stack up.

Wealthsimple have done a deal with fellow robo advisor Moneyfarm and so all account holders will automatically be transferred over on 28th January 2022. The platform have said that fees paid will either be the same as they are today or lower.

If you don’t want to be moved, you have until 5th January 2022 to withdraw your money or move elsewhere. Just remember if you withdraw money from any ISA, it’s then outside that tax quarantine and if you put it back into another ISA, that will count towards your £20,000 annual ISA allowance. If you arrange a transfer by another platform, it stays in the ISA tax quarantine and so won’t count towards your annual allowance.

I think that on balance once they decided to shut up shop, this is probably the best thing they could have arranged for customers. To decide on whether Moneyfarm is the right home for you, you can always check out our Best Buy tables. There’s no guarantee that Moneyfarm will be here in years to come either of course but they are big in Italy and other European markets and recently hit €2bn under management so they are in growth mode, not retreat mode (as far as the external eye can see). Hope this helps.

Holly

Answered by

Holly Mackay

Founder and CEO of Boring Money

I’ve worked in investment markets for over 20 years. I started out at Merrill Lynch Investment Management and worked at a few big names before setting up my first business in 2008.