View more on these topics

Wrap to bring separation

The development of wrap will see the death of provider involvement with top-end advisers, according to Mazars.

Chief executive Paul Willans told PIMS delegates last week that the emergence of true open architecture and the move to place assets under adviser control will lead to a separation as providers concentrate on developing platforms for their own advantage.

He said the adviser community needs to look closely at the agenda behind the provider move into platforms as they move away from the traditional commission model.

He said that provider platforms are trying to retain control of the assets under management but advisers themselves can move from having assets under influence to assets under control with the development of open architecture.

Willans said: “If this development happens, for the true IFA we will see the death of the involvement of the provider as they will be looking at developing platforms to their advantage rather than to ours and therefore I see a separation.

“The providers are not doing this out of the goodness of their hearts. It is about distribution and, more important, it is about retaining control of the asset, a fundamental thing.”

He criticised the technology behind many of the provider-owned wraps and questioned the commitment of parent companies to continue to fund them in the long term.

Thinc Group director of wealth management John Abraham said advisers could not trust life companies when it comes to wrap and suggested stochastic modelling tools may be being used to bias the platform provider’s own funds.

He said Axa’s ownership of Thinc was not relevant in the discussion as the Thinc wrap, and assets under management, will be owned by the advisers.

Winterthur Life managing director David Thompson said many provider moves into wrap were defensive strategies and all providers will have to grapple with difficult questions on adviser independence and satisfying both the adviser and client.

He said the distributor “land grab” would calm over time. He predicted some casualties but said this would eventually lead to platform profitability being prioritised.


Split decisions

This week, I am returning to a subject which I addressed some years ago, since when there have been significant and important developments about which I believe financial advisers must be aware. The subject is pensions and divorce.I will start by going back to basics. The question of a divorced person’s rights to benefit from […]

Lighthouse service matches client risk

Lighthouse has set up a client risk matching initiative for its advisers, using a psychometric fact-find developed by Distribution Technology. It is designed to allocate clients’ assets and will link directly to the underlying funds offered through F&C Asset Management’s lifestyle fund of funds.


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