View more on these topics

A solution for planners

First and foremost, we are a firm of financial planners, not a manager of funds or experts in asset custody, investment dealing or investment administration.

We therefore made a strategic decision to partner with a firm where their investment capability would enhance what we did as financial planners.

Following a lengthy period of due diligence, this led us into discussions with Seven Investment Management. and we have now been working with the 7IM team for over five years.

We are extremely costconscious, looking to drive out as much cost from our client portfolios as possible. If you accept that, over the long term, the equity risk premium is only 4 per cent or so over the risk-free rate, then we do not want clients to lose a significant amount of that premium in additional wrap or IT costs.

We therefore wanted a wrap that delivered asset custody, asset administration and online dealing as cheaply as possible.

We have a genuine partnership with 7IM and have had significant input into the design of their wrap proposition – this is extremely important to us.

One of the Paradigm Norton team spends time on a regular basis with the 7IM technology team based in Edinburgh, reviewing enhancements to the wrap account and incrementally adding to what they are currently able to deliver.

Why did we select 7IM as our preferred wrap provider? It has a very competitive charging structure, has independent asset custody and is committed to ongoing and incremental improvement to the platform and its functionality. There are
a breadth of funds available on the platform, many
of which are almost impossible to access on competitor wrap accounts.

Importantly, 7IM allocated a client relation­ship manager to Paradigm Norton to help us through difficulties which invariably arise from time to time. And finally, the ability to white-label the wrap account was hugely attractive, providing our clients with online access to their portfolios.

We have been delighted with the service levels that we have enjoyed over the years. Yes, things do go wrong from time to time but they are promptly resol­ved.

I appreciate the desire the 7IM team have for inno-vation and their ongoing preparedness to enhance what is already a very good IT solution. New tools are being introduced and are coming online on an ongoing basis but these are of limited value to us alth­ough they may be att­rac­tive to other adviser firms.

Barry Horner is chief executive at Paradigm Norton Financial Planning

Recommended

Bubble bursting for city flat prices

Abbey deputy chief risk officer Iain Laing believes that flats will be hit hardest in a housing market downturn.Speaking at last week’s key account conference, Laing said: “We can see one very clear story in that the market for flats, particularly city centre flats, looks disastrous at the moment. We have seen big devaluations and […]

MetLife cuts Tip charge and is set to add accumulation plan

MetLife is understood to be launching a new accumulation retirement product this summer and has reduced prices on its trustee investment plan.The firm will be offering a pension product positioned alongside its decumulation Tip and has cut charges on the Tip by 0.45 per cent to boost sales. Hargreaves Lansdown pensions analyst Nigel Callaghan says […]

FSA to visit firms in platform probe

The FSA is to conduct a series of visits to advisers using platforms after warning that it has concerns about conflicts of interest, potential increases in consumer costs and inappropriate investment advice.Retail policy and themes lead Rory Percival says the regulator has worries over how advisers manage conflicts of interest on all platforms, including adviser-owned […]

International jurisdictions

By Neil Jones, Canada Life Investing through international providers has grown in popularity over recent years as investors seek out the benefits of gross roll-up and the wider range of investment options that can be available. When considering a recommendation for a lump sum investment, not only does the adviser have to select a suitable tax wrapper […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment