Firenze, a Manchester-based fintech redefining access to “Lombard lending,” has announced a new partnership with AJ Bell Investcentre.
Advisers using the AJ Bell Investcentre platform will be able to refer high net worth clients to Firenze and facilitate Lombard lending – the ability to borrow against the value of their General Investment Account (GIA) or offshore bond, subject to meeting certain conditions. This can be achieved without selling assets, disrupting a client’s investment strategy, or triggering capital gains tax.
Lombard lending can also serve as an intelligent cash flow solution, providing access to capital without sacrificing market exposure, removing the need to transfer assets to a private bank, and enabling clients to continue benefiting from investment returns while their facility is in place.
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AJ Bell is the latest platform partner for fast-growing Firenze, which works with firms representing a combined AUM of £200bn. As one of the UK’s largest investment platforms, AJ Bell’s decision to allow access to Lombard lending signals how it is extending beyond the realm of private banking and into the mainstream.
Previously, barriers to entry – primarily the requirement to hold assets with a private bank – prevented many UK investors from capitalising on the opportunities Lombard lending presents. By allowing clients to secure a facility against their portfolio, advisers can now offer a flexible, tax-efficient route to liquidity, whether funding a property purchase, supporting the next generation with tuition fees or a deposit, or adding sophistication to longer-term tax or inter-generational wealth planning.
Advisers using AJ Bell Investcentre can refer eligible clients directly to Firenze to establish a Lombard facility. Key terms include:
Minimum portfolio values of £150,000 (GIA) and £500,000 (offshore bond), subject to Firenze underwriting
- Loans from £65,000, up to 50% of portfolio value
- Facilities set up and live within 48 hours of approval for individual and joint borrowers
- Open-ended loan period with maximum flexibility on repayment
- Interest charged only on drawn balances – variable rates from Bank of England base rate plus 1.95% to 3.25%
- Simple fee structure: a one-off arrangement fee and an annual facility fee, both scaled by facility size
More information on Lombard lending by Firenze can be found here.
Mark Rendle, AJ Bell advised managing director, said: “Advisers are increasingly looking for tax-efficient ways to protect client wealth, and Lombard lending gives advisers and clients the option to flexibly manage liquidity to fund a range of financial plans. Through our link with Firenze, advisers can help high net worth clients borrow against the value of their assets without disrupting their investment strategy or, importantly, triggering capital gains tax with an asset sale.”
David Newman, CEO of Firenze, added: “The demand for Lombard lending continues to grow as advisers increasingly see the value it can have in meeting client’s liquidity needs. Whether used to meet an immediate cost or as part of a longer-term wealth strategy, clients increasingly understand how utilising both sides of their personal balance sheet can help them achieve their goals. It has been a real pleasure working with the AJ Bell team to bring this capability to assets held on AJ Bell Investcentre.”
