New software weans advisers off commissions
Portfolio administrator Praemium is launching a new virtual wrap product that is aimed at assisting planners transitioning from commission-based remuneration to fees for service.
SMARTwrap will have a PDS base price of 82 basis points but will have an actual wholesale cost price of 32 basis points.
The 50 basis point spread will be available to advisers to use as rebate fees as they transition from rebates to fees, according to Praemium Group chief executive Arthur Naoumidis.
As advisers move to fees they can switch that off and gradually start transitioning from rebates to fees, so that once a client has been moved to fee for service, the 50 basis point adviser commission will be rebated to the client.
Both fee-paying clients as well as those paying commissions could be administered on the same platform throughout the process, he said.
SMARTwrap would sit on top of Praemium’s recently revamped V-Wrap platform and benefit from the V-Wrap integration. All the integrations that Praemium develops for V-Wrap would automatically flow onto SMARTwrap, Naoumidis said.
SMARTwrap will offer access to approximately 650 wholesale managed funds, direct equities trading and administration, separately managed accounts and other investment types, according to Praemium.
Recommended for you
A quarter of advisers who commenced on the FAR within the last two years have already switched licensees or practices, adding validity to practice owners’ professional year (PY) concerns.
Integrated wealth and financial services group Rethink has launched a financial planning arm called Rethink Wealth to expand beyond property investing and into holistic wealth management.
While adviser numbers continue to slowly creep back up, the latest Wealth Data analysis reveals they would actually be in the green for the calendar year if it weren’t for so many losses in the limited advice space.
Iress has appointed a chief AI officer to spearhead the fintech’s strategic focus on AI, with chief executive Marcus Price describing how the technology opens the doors to a “new frontier for wealth advice”.
