Thousands affected as RaboDirect axes investment funds

Customers are being offered the option to sell at any time prior to April 24th

Tim Bicknell, general manager at RaboDirect Ireland. The company has over 90,000 customers in the Republic, about 6 per cent of which have active investment accounts. Photograph: Brenda Fitzsimons

Tim Bicknell, general manager at RaboDirect Ireland. The company has over 90,000 customers in the Republic, about 6 per cent of which have active investment accounts. Photograph: Brenda Fitzsimons

 

Thousands of RaboDirect investment customers will have to sell their funds or see them transferred to a third party as the bank looks to discontinue the offering next year.

The company has more than 90,000 customers in the Republic. About 6 per cent of these have active investment accounts, which means about 5,400 customers are affected.

In a statement, RaboDirect said it had begun contacting those affected directly to explain what will be involved and the steps they will need to take.

The decision to discontinue the funds stems from moves by the company to simplify its business model globally.

Withdrawal

This led to a review of its positioning in the market in the Republic and the withdrawal of its managed funds offering.

Customers with investment funds are being offered the option to sell at any time prior to April 24th without incurring any exit fees.

“We realise that some customers may prefer to retain their funds and these accounts will be transferred to Cantor Fitzgerald Ireland, which has relationships with all the fund providers on the RaboDirect investment service,” added the statement.