No one likes having to trawl through the small print for details so let’s cut to the chase on how Multiply makes money.
It’s free to generate a Multiply financial plan. All of the information in it, including product suggestions, is also totally free to access.
When our financial advice service is live this summer, for wills, savings and insurance products, if you decide to set up a product we recommend the provider may pay us a fee for sending them your business. Of course you could always set up the product directly and we would earn nothing. But we hope you don’t because using the Multiply link doesn’t cost you any extra and means we can keep the lights on and more importantly, keep financial plans free for everyone.
It’s against Financial Conduct Authority (FCA) rules for Multiply to collect a fee from an investment platform/fund or pension product provider for sending them your business. This is so we’re not tempted to recommend you investments that aren’t suitable for you, just because we get a good deal. This is a really good rule, it keeps your money safe and we think that’s important.
For most investment and pension product recommendations you’ll see, Multiply will earn no money.
So to help us cover costs and continue providing free financial plans, later this year Multiply will be launching its own investment platform. This allows you to open a self invested personal pension, stocks and shares ISA and general investment account with Multiply. If you do decide to open an account with us we will charge you a fee, which is calculated as a small percentage of the amount of money you hold in that account.
But won’t Multiply be tempted to recommend its own platform above other providers? Well, in short, no. If our platform suits your needs best we will recommend it, if it doesn’t, then we won’t.
And you won’t just need to take our word for it. To hold ourselves to account and to live true to our commitment to being fiercely impartial, we’re going to publish monthly reports of how often we recommend our platform compared to others. So you’ll be able to see if we’re being honest.
Over the next few weeks, we’re also going to be publishing our “research methodologies”. This is a fancy term we use for the documents that lay out how the Multiply Advice Engine chooses the products it recommends to you.
You’ll see from these that at no point does the money Multiply earns affect what we recommend.
We haven’t decided what the fees for our platform will be just yet. We do know we want them to be inexpensive. We’d love to know what you think is a fair fee, so please email us with your suggestions firstname.lastname@example.org.
Too often financial companies hide extra charges in the small print and we understand that’s really frustrating so we hope this blog helps clear things up. At Multiply HQ we often talk about being “radically transparent” so please get in touch for more detail, we’re willing and open to share.