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
The Financial Services and Credit Panel has made a written order to a relevant provider after it gave advice regarding non-concessional contributions.
With wealth management M&A appetite only growing stronger, Business Health has outlined the major considerations for buyers and sellers to prevent unintended misalignment between the parties.
Industry body SIAA has said the falling number of financial advisers in Australia is a key issue impacting the attractiveness and investor participation of both public and private markets.
As advisers risk losing two-thirds of FUA during the $3.5 trillion wealth transfer, two co-founders underscore why fostering trust with the next generation is vital to retaining intergenerational wealth.
