Clients and advisers are demanding consolidation of assets onto simplified tiered structures.
The traditional modular pricing model means that in order to determine the price of having assets on a system, a client would have to add up the different modular components. ‘Nimble’ platforms are now seeking to consolidate all assets onto one structure, giving clients the benefit of economy of scale, says OneVue group head of sales Stephen Karrasch.
Having all assets in one place makes it easier for an adviser and client to understand fees, to compare them and to quote them, he says.
“This is all about facilitating the move to fee for service. Onevue pays no volume rebates, no commissions, no trails, we’re completely FoFA compliant. Now we need to allow advisers to charge their fee in the much more flexible array of possibilities – dollar based, asset based, tiered asset based or a combination of all three.”
Karrasch says there is no simple answer how to charge fees, and it comes down to the relationship between the adviser and client.
“It really comes down to value for money and getting the client comfortable with what you do for the fees you charge as an adviser.
“We want to make it as flexible as possible, so advisers and clients can choose what pricing methodology that they wish to use for the advice that’s given.”
The platform will also offer two separate investment package options, Wrap+ and UMA Vantage.
With Wrap+ the adviser and client will hold predominantly custodial assets, while the UMA Vantage is the “all singing, all dancing service”, says Karrasch.
“UMA Vantage will comprise everything in Wrap+ and allow for more sophisticated investments such as direct property, loans including limited recourse borrowing arrangements, collectibles, non-custodial shares, warrants and structured products.”
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