Wrap services are changing the industry and we believe Skandia Wrap has been at the forefront of this development.
We realised a couple of years ago that to create long-term value within our business we needed to move away from a business model that relied so heavily on initial commission to a model that was more dependent on trail commission and fees.
This remuneration model better matches the type of advice that we provide to our clients which is primarily ongoing holistic financial planning rather than stand-alone product sales.
We now use our wrap service for practically everything we do. It has enabled us to grow our business efficiently and cost-effectively while providing a high-class service to our clients.
Our clients love it because it involves them in the process and makes our advice very transparent.
We monitor the markets constantly and the e-business tools on Skandia Wrap enable us to take immediate action when required. The 24 hour access and same-day switching are particularly strong features and we have used the bulk switching facility a few times to move large numbers of clients out of a particular market when appropriate.
Our clients are involved in the advice process because they can monitor their own portfolios online and see the value that our advice is adding. The portfolio review service also helps with our regular client review process and makes it easy for us to demonstrate how individual elements of a client’s portfolio are performing.
Using a wrap service has completely changed the way we do business. The interaction with our clients is much more dynamic and the wrap service enables us to meet their needs quickly, efficiently and cost-effectively.
For me, it has made the industry both more interesting and more satisfying to work in.
Peter Butcher is principal at Butcher & Moody Financial Services.