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Are all the extras worth the cost?

The wrap round table discussions in last week’s issue of Money Marketing have been thought-provoking. As attractive and flashy as wrap services might appear to be, how do they match up with client demands?

Might it be the case that for 95 per cent of clients, a wrap will far exceed their demands? How many clients regularly check their portfolio over the internet?

If most clients do not need or want all the extra bells and whistles, then whose benefit are they for and are they worth the extra cost?

Any advisers with a well established client bank and regular stream of renewal commission may well find that when they do their sums, it is cheaper to do without a wrap service and instead employ a dedicated administrator on a standard salary package. Wrap service charges are not yet low enough to be attractive for that category of adviser.

Of course, for the one-man band with a fairly small portfolio of clients, I can see that a wrap service can be essential. However, I am far from persuaded that they are yet of real value to many others.

Robin Keyte
Towers of Taunton (Financial Services)
Taunton, Somerset


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