Revolut bags watchdog approval to beef up UK wealth offering
Revolut has received the regulatory green light to bulk up its wealth management offering, marking one of its first major expansions in the UK after bagging its banking licence.
The $75bn juggernaut’s trading arm has secured a Variation of Permissions from the City watchdog, which allows the firm to broadened the scope of regulated activities it can offer in the UK.
The fintech giant said the fresh approval is set to allow Revolut Trading to serve a wider pool of investors, including the likes of high net worth individuals in the same ecosystem as retail investors.
Victoria Laffey, head of operations at Revolut Trading, said: “These permissions are the missing piece allowing us to unite investment, advisory and portfolio management under one roof, making them even more accessible.
“Our mission has always been to remove the friction of fragmented financial services; and we can now put sophisticated wealth management products and tools in the hands of every type of investor, helping our customers build and manage wealth with confidence.”
Revolut to go toe to toe with incumbents on wealth push
It comes after CityAM reported the firm was eyeing a trading and wealth push with a series of new hires.
The fintech begun advertising for a raft roles in March in its new ‘Wealth and Trading’ division, in a clear sign that the unit looks to be a big target for post-licence focus.
The move puts Revolut toe to toe with the banking incumbents in a different arena as traditional high street lenders look to grab a slice of the wealth management pie.
Natwest snapped up Evelyn Partners in a £2.7bn deal earlier this year, marking the firm’s largest takeover since the financial crisis and a clear indicator of its future growth priorities. Chief executive Paul Thwaite said the move created the group’s “third growth engine”.
Meanwhile, HSBC splashed $5m (£3.8m) on its luxury wealth centre in the heart of London last year as it targets becoming a top five wealth manager in the UK.