Each company will put up $25 million for the new company, which has not yet been named. It is expected to become operational by the end of 2000.
E-Trade's interest in the partnership rests with delivering its customers more financial planning services than it currently offers online. By teaming with EY, E-Trade now can refer its customers to the Big 5 firm for additional opportunities.
E-Trade will employ an online, virtual-environment interface developed by EY so that customers can determine their needs.