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Skandia chief in misselling alert over property in wrap

Skandia UK business unit chief executive Brett Williams believes platforms including residential property holdings within their portfolio valuations could encourage misselling.

Williams says putting houses on to a platform and taking 0.5-1 per cent commission on the value of the property could be construed as a missale because they do not advise on anything to justify a charge.

He says: “When people first started talking about wraps in the UK, there was a lot of noise about putting property on them, which is just daft. How do you value it on an ongoing basis?”

Williams says the only role for an IFA to perform when it comes to residential prop-erty would be the future plans for the house – whether it will be sold, retained for a later sale or passed on as an inheritance – and the inclusion does not warrant a wrap or its subsequent charges.

He says: “There are plenty of people that are better equipped to give advice on what to do with a property. I really do not see it as a reason to insist that a client moves on to a wrap.

“It just gives you the value of the property, which is changing anyway, net of the mortgage and looks like just another product feature that is pretty irrelevant.”

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