View more on these topics

Standard says wrap sector oversupplied

The UK wrap market is oversupplied and new launches are unlikely this year, warns Standard Life head of communications Mark Polson.

He says smaller platform providers will find life increasingly difficult this year and will look to be taken over.

He says: “This is an oversupplied market, with too many people trying to do the same thing. In the next 18 to 24 months, the smaller players will leave, amalgamate or be bought. But who will buy them? They may well get sold but not at the premiums they expect. We might see some admin offerings but we are not going to see a lot more big wrap launches in the future.”

Polson’s comments follow the more bullish views of Axa head of distribution services Paul McMahon in last week’s Money Marketing. He said the UK wrap market was ripe for investment from overseas because of the underfunded pension system and the potential for a huge increase in transactions being undertaken on platforms.

Nucleus chief executive David Ferguson challenges whether Polson’s definition of small is based on net inflows or historically accumulated and legacy assets. Ferguson says: “As ever, a large life company confuses scale with profitability. There is no demonstrable correlation between spending outrageous sums of money and creating shareholder value.”

Novia chief executive Bill Vasilieff says: “Standard Life has been a small player in the wrap space for quite a long time now so I guess they should know.”


Shorn of living pension

Zombie life funds have for years been a whipping boy for personal finance journalists, whether writing about pensions or any other with-profits investments. Their restrictions on investing in equities have made attacking investments in both closed and open with-profits funds like shooting fish in a barrel.

Childcare - thumbnail

Three questions for employers…

The Family and Childcare Trust’s annual survey has been widely reported in the media and the two headline figures were these: the average cost of a nursery place for a child under two has risen by 33 per cent since 2010; and the costs have risen by five per cent in a single year.


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm