Standard Life Wrap has announced it will facilitate auto-disinvestment and has increased the options for taking an adviser charge from clients’ investments.
Auto-disinvestment is the process of funding an adviser charge from client holdings to cover any shortfalls in the cash account.
Standard’s auto-disinvestment process will launch in July and will proportionally take an adviser charge across mutual fund holdings. It will not take funds from tax-wrapped investments except the Standard Life Wrap Isa.
The new options for taking adviser charges mean advisers can take their fees as a percentage of investments or as a flat fee.
It will also allow clients to withdraw money from their investments to use through their wrap cash account.
The changes come as part of a 12-month development programme.
A Money Marketing study of auto-disinvestment processes in November showed Standard was the only one of 11 platforms which did not have an auto-disinvestment process in place.
Standard Life head of platform proposition David Tiller says: “The enhanced withdrawals and auto-disinvestment capability give advisers the choice they have been asking for.”
Evolve Financial Planning director Jason Witcombe says: ”Auto-disinvestment is useful because monitoring every client’s cash account to ensure your charges are covered is somewhat laborious. Most platforms have this kind of thing in place already.”