The growing number of wraps will only convince more advisers to delay choosing a single provider and wait for consolidation in the market, according to JP Morgan Asset Management.
JPM’s survey of the adviser market found that half see wrap it as a factor crucial to their future success and 49 per cent also say they expect to upgrade their technology or move to a wrap platform in the near future.
But head of UK retail sales Jasper Berens says the fact that take-up of wrap has been slow and that many advisers still see wrap as part of their future rather than the present reflects concerns about choosing from the large number of offerings in the market and their robustness.
Berens: “The impact of wrap is undoubtedly growing but the reality is that the reliability of some of the newer platforms can be called into question.
“Eventually, they will consolidate and we see some four to six providers establishing themselves in the market, and not necessarily just the big players.
“This may be the time that some of these guys come off the fence as it will be essential for firms of all sizes to adopt platform technology to some extent in order to control operational costs.”