The Wrap Migration service

CWC Research, is able to offer a solution for advisers considering migration to an intermediary platform.

Changing to an asset-based fee model employing a platform is the future for most intermediaries. However, big decisions have to be made regarding the chosen platform, cash flow management, target clients, period of migration, remuneration model and more. Mistakes could be very costly. Our solution will provide a process to manage these issues and minimise downside risk. Wrap platforms can be used as products, choosing the best platform for individual clients. This will not produce the cost savings that advisers need to achieve.

One or more platforms could be used for transacting investment business within the firm, possibly retaining an initial plus trail remuneration basis that could be related to a form of fee charging with commission offset. This would achieve some savings.

The desirable model, experts agree, is an asset-based fee model, employing a single platform, ultimately encompassing all product lines. This will achieve very significant savings and improve the client offering immeasurably, as the platform acts as a single administration system for transaction, aggregation, reporting, modeling etc, etc.

To migrate to this model, the adviser will have to consider the nature of clients retained. This will often be far less than the thousands a typical adviser will have on their database, many of whom have been sold a single product.

Thus, a separate business may be created, leaving the rest to be run as a separate division, sold or discarded.

For further information, e-mail us.

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