Reform proposals could kick-start corporate wrap market, says Bravura
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Proposals for employees to pay into a welfare protection account could kick-start the corporate wrap market, says Bravura Solutions chief executive for EMEA Tony Klim.
Klim says proposals put forward by think-tank Reform, which included a radical shake up of the welfare system so that people would pay into a protection account, could accelerate the corporate wrap space.
While he believes corporate wrap is “over-hyped”, he says: “There has been suggestions of paying into a protection account and the concept of paying into an Isa for many low income people is a better long term investment than a pension.
“If that was the case then the concept of an Isa in the workplace could be quite successful. But I think it is quite a way off before we see any proposals firm up in that direction.”
Commenting on today’s corporate wrap market, Klim says: “We’re hearing a lot of noise about corporate wrap which I’m a bit cynical about because I think it is more people trying to make use of the wrap technology they have got in different direction because core wrap volumes are not particularly strong.”
Going forward he says: “I don’t think the drivers are the same in the UK as in other markets. People have been pitching worksite marketing, which is the old name for it, for many years and it is really now just opening that up into a new flavour.
“Bravura is quite big in corporate market in Australia and other territories but then the drivers are different. They have compulsion on pensions in Australia so it is a completely different model.”
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