UK based execution-only stock broker Selftrade (the trading name of Talos Securities Limited), today announced it has become a bank with deposit taking permissions granted by the Financial Services Authority (FSA).
As the UK subsidiary of Boursorama, a key European player for online financial information, online brokerage and online banking and part of the Société Générale Group, this is the first step towards offering banking and savings products and services, subject to further FSA approval.
As a deposit taker, Selftrade is making the initial move towards introducing retail banking products to its customers as its parent company Boursorama has successfully done. The first product will be a Cash ISA. This marks an extension of Selftrade's execution-only share dealing proposition, which for now remains at the heart of the Selftrade business and which will help increase the number of accounts (currently more than 220,000).
Inès-Claire Mercereau, Chairman and CEO of Boursorama, comments:
"Thanks to this deposit taking permission, Selftrade will be the first online broker in the UK market to provide customers with retail banking and savings products and services. With a broader offering, our ambition over the years to come is to position our UK subsidiary as a one-stop-shop for financial products and services, as we are doing in France with Boursorama Banque."
Paul Greetham, Chief Executive Officer at Selftrade, comments:
"Becoming a deposit taker is a natural extension of our business and by taking this first step towards offering banking and savings products and services as a 'broker-bank', we are able to give customers greater choice and a unique combination of products with a Stocks and Shares and Cash ISA sitting alongside each other. Over the next few years and subject to further FSA approval, we aim to expand our suite of products and services gradually, without losing sight of our core share dealing proposition. In line with our existing strategy, we want to ensure that we offer customers products and services that provide long-term value and client satisfaction."
By having a Stocks and Shares and Cash ISA under the same roof, customers will be able to transfer money from their Cash ISA into their Stocks and Shares ISA quickly and efficiently.
Given Selftrade's bank status, eligible customers with cash held as deposit with Selftrade would be entitled to compensation (up to £85,000) under the Financial Services Compensation Scheme (FSCS), subject to the FSCS rules.