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‘Wrap offers efficiency and won’t replace advice’

Wrap should not be considered a threat because it will help drive client interest in investment and help advisers work more efficiently, says Baigrie Davies director Amanda Davidson.

At a Money Marketing Live panel debate on the future of the IFA market, Davidson said advisers should not be concerned that wrap will put too much control in the hands of the client.

She said: “It empowers them in terms of knowledge and understanding but there are still many clients who want a bit of a second opinion, a comfort zone.

“Asset allocation and decisions over performance cannot be carried out by a piece of technology – you need the advice.”

Informed Choice Nick Bamford said it is not IFAs who are under threat from the growth of wrap but traditional product providers.

Bamford said: “If you had to be anywhere right now, I would be a directly regulated small to medium-sized organisation. But as for the product providers, the writing is on the wall. Providers are losing money hand over fist and the old models are finished.”

Worldwide Financial Planning managing director Peter McGahan said the growing uptake of wrap could spell bad news for back-office software providers unless they can adapt to find a place in the food chain.

McGahan said: “Back-office systems as they currently stand will go out because they are designed towards the current trend for transactional product sales. With wrap, you have a seamless piece of technology from start to finish with no need for manual valuations.”


Reckless generic

The Government seems determined to bring in some form of generic advice.

Hit and myth

Many brand-building exercises fail because companies mistake customer convenience for loyalty, says Simon Parker, director of public relations and marketing company SPS Marketing.

Gordon Brown pledges further 100,000 homes

Gordon Brown has said he wants to see five new eco towns built in a bid to combat the South East’s housing shortage.As part of his leadership campaign, the chancellor promised to build 100,000 properties on old industrial sites.He told Sunday AM he wanted to go further than Margaret Thatcher in extending home ownership.“A home-owning, […]


Lord Sheikh

The chairman and chief executive of Camberford Law has juggled a successful career at the Lloyd’s broker with an active role in the House of Lords since becoming the Conservative Party’s first Muslim peer. He sees his role as protecting and promoting the financial services industry. Interview by Paul McMillan.


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