View more on these topics

Wraps are on but few IFAs are ready

Under 20 per cent of IFAs have heard of wrap services despite many product providers planning to introduce them over the next year, according to JP Morgan FundsHub.

Wrap services, which bundle investment products so they can be managed as a single valueadded portfolio, are becoming increasingly popular with services such as Barclay&#39s Open Plan and Virgin One accounts.

The new generation of wrap services is likely to be offered by the major banks and insurance companies and will be more sophisticated, with a broader range of products and different tax treatments.

Within wraps, IFAs will be able to monitor and manage their clients&#39 total underlying assets across a range of products such as pensions and unit trusts as if they were part of a single pool of assets.

It is envisaged that IFAs will be paid a significant proportion of a flat percentage fee charged to clients for their ongoing asset management services.

But 77 per cent of IFAs are unfamiliar with wrap services, indicating there is a long way to go before they take off in the UK.

Of the IFAs who are familiar with wrap services, 39 per cent say they would be prepared to offer on-going asset management advice.

JP Morgan FundsHub chief executive Mark Lund says: “IFAs should prepare for questions from customers about wrap services, as we are confident that they will become as popular here as they are abroad. We believe that wrap services will help IFAs command much greater respect from their clients, because of their enhanced advisory and management role.”


Merger for Jackson Batten and AFPS

South-east IFA firms Jackson Batten and AFPS are merging to create Aurora Financial Group. The combined group will have 110 staff, including 40 RIs, and a projected turnover of £6m by the end of the financial year. Aurora will have offices in Canterbury, London and Sidcup. It will be headed by joint chief executives David […]

Cassells is out as Old Mutual restructures

The manager of Old Mutual&#39s flagship hallmark growth and income portfolios, Logie Cassells, has left the firm. His departure comes with the firm seeking to boost its flagging performance. It is another round of moves at Old Mutual following the departure of its European equities team and loss of marketing director Barry Russell. The restructure […]

Get back to the real world of client borrowing

Please spare a few moments to ponder over the future not of mortgage regulation or what is the next move with interest rates but the very basic ingredients that we should advise our clients on. How much to borrow and over how long. Why does everybody take a 25-year mortgage? Of course, with flexible mortgage […]

Aegon to cut 600 staff

Aegon UK is looking to lose up to 600 jobs to balance out its purchase of IFAs in a bid to become a top 5 player. Most of the jobs are likely to go at its Edinburgh headquarters. It says investments in technology will lead to cost savings of £40m by next year.Aegon UK group […]

How QE is distorting the gilt market

By Mike Riddell The moves in gilts in August were truly exceptional. Volatility in the gilt market (based off 10-year gilt futures) has soared to close to the highest levels seen this millennium, on a par with the eurozone debt crisis of 2011/12 and behind only the global financial crisis of 2008/09. The first distortion […]


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