John Milliken (pictured) is CEO at Defaqto.
The provider unveiled the addition of ‘Star' and ‘Diamond' ratings for enterprise investment scheme (EIS) funds and venture capital trusts (VCTs).
A product's Star rating is a measure of the quality of features whilst a Diamond rating is an indication of product performance. Defaqto said these two ratings are designed to «help advisers and consumers assess products at-a-glance».
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Defaqto chief executive John Milliken said: «The new Star and Diamond ratings for EIS funds and VCTs will help advisers when they discuss tax-advantaged investment options with their clients, and also when they evidence their recommendations.»
The decision to diversify its product ratings portfolio has come in the wake of Defaqto's acquisition of financial institution MICAP in July.
MICAP offers independent research and advice tools on tax-advantaged products. The new Star and Diamond Ratings will leverage MICAP's data on the tax-advantaged market and apply Defaqto's methodology to assess quality and performance.
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Defaqto said the MICAP platform is used by more than 1,000 IFA and wealth management firms and provides advisers with «clear, independent information» on VCT, EIS, SEIS, and business relief products, as well as digital application forms and post-investment consolidated reporting.
Milliken added: «By combining Defaqto's mission-critical technology and unrivalled understanding of financial planners' needs with MICAP's specialist data, we are perfectly placed to support advisers and inform consumers in the tax-advantaged investment markets.»
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