FNZ breaks UK with wrap solution
UK heavyweight financial services provider Standard Life has signed a six-year contract with First NZ Capital (FNZ) to deliver a wrap service to the independent financial advisers (IFA) market in 2006.
“While other wrap services are currently available in the UK market, mainly from start-up companies, Standard Life will be the first major financial institution to offer a wrap product,” said Adrian Durham, FNZ’s head of distribution platforms.
Speaking to Money Management, Standard Life’s UK and Europe chief executive Trevor Matthews, who is former head of Legal & General in Australia, said: “We liked the very high level of functionality that they’ve got and the end-to-end opportunity they give us, and the fact that they have had good experience over a long period of time in New Zealand with IFAs.”
The Standard Life wrap will offer financial planners access to managed funds, listed stocks and shares, cash and multiple currency investments.
Standard Life, which is a major player in the UK risk market, is also hoping to eventually offer access to risk insurance and banking products via the wrap service, according to Matthews.
While wrap solutions are now available in the UK, Durham said “most solutions are about five years behind those available in the Australasian market”.
He added that while the platform offerings from Australian providers are very sophisticated, few offer multi-currency functionality, making it difficult to win contracts overseas.
Matthews said: “We possibly could have selected an Australian provider, I don’t think there’s a lot between them, but I was just very impressed with the people at FNZ.
“I don’t think it’s a New Zealand/Australia thing, I think it’s a southern hemisphere/northern hemisphere thing. There’s a lot of good stuff happening in Australia and New Zealand, which can be exported over here.”
FNZ is actively seeking business offshore, according to Durham, and is being advised on new market entry by consulting group Tor Financial, which is based in the UK and headed by expatriate Australian David Harris.
FNZ also has a deal pending with Professional Investment Services in Australia.
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