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Popularity of wrap rises among IFAs

Two-thirds of IFAs are very likely to recommend wraps in the future up from just over 50 per cent a year ago according to a survey by Watson Wyatt.

The survey found that IFAs are most likely to consider recommending Skandia, Cofunds and Funds Network wrap platforms to customers.

The most commonly cited reasons why advisers think wraps will be successful include ease of administration and administration efficiency, cost, flexibility and investment choice.

But reasons why advisers thought wraps may not be successful included additional charges, lack of understanding by customers and advisers, lack of motivation for advisers to promote them and poor administration.

Around 75 per cent of IFAs were likely to recommend a wrap provided by an insurance or life company and four out of five were likely or very likely to recommend a wrap provided by an investment house.

Watson Wyatt senior strategy consultant Mike Williams says: “While IFAs are increasingly seeing the benefits of wraps they are under no illusions about their potential pitfalls.

“We found a strong preference for wrap providers – such as life companies and investment houses – who have a long-established relationship with IFAs. Having relevant experience and a wide range of products were among the reasons they have a big head start as wrap providers among IFAs.”


Positive feeling

It is interesting to note that most fund managers are bullish about both the UK and Europe but three of the fund firms I respect most are negative about the UK and positive about Europe. These are Fidelity, Schroders and JP Morgan.

Personal Touch opens Box to boost club

Personal Touch Financial Services will relaunch its mortgage club next month in a bid to entice over 1,000 new brokers on board.The network admits its current club proposition has failed to achieve any significant market penetration, with only 120 directly authorised firms as members, and it is rebranding the arm as Mortgage Box from February.It […]

Bell to Balls – save our Asps

The pension industry is “punchdrunk with knee-jerk tinkering”, says Andy Bell, managing director of Sipp provider AJ Bell.He is challenging the Government to rethink the changes on alternatively secured pensions contained in the pre-Budget report.The PBR effectively killed off Asps by imposing an unauthorised payment charge of 70 per cent, where Asp funds remaining on […]

‘How to…audit your auto-enrolment scheme compliance’

Avoid pension penalties with our auto-enrolment checklist

According to the Pensions Regulator’s annual commentary and analysis report released this month, 785 potential non-compliance cases were referred for investigation, with 23 auto-enrolment compliance notices issued. And they predict that the use of their statutory powers is only going to increase.


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