Tribeca’s Prowse starts wrap business

Outgoing chief operating officer of listed financial services education provider Tribeca, John Prowse, has set up his own fee-for-service wrap account business, and hinted at intentions to set up his own financial planning dealer group.

Due to leave his post at Tribeca in March, Prowse said the new business, Financial Shoebox, would be aimed firmly at retail investors, particularly trustees of self-managed superannuation accounts.

Unlike most other wrap products, Prowse said the wrap business would charge customers a flat entry fee.

“At the moment it’s very hard to find wrap technology that doesn’t charge on a percentage of revenue,” he said.

When the business officially opens from its Sydney base in a few months time, Prowse said the wrap service would be completely divorced from financial advice.

But he added that the business would need an Australian Financial Services Licence “if and when we move to advice”.

“But we will start off providing the wrap product. Clients who want advice can go to a financial planner if they want.”

Prowse also ruled out any immediate outsourcing deals with financial planning dealer groups.

“But if we do deal with intermediaries we won’t be making any charge,” he said.

Prowse announced that he would leave his post at Tribeca in December, just days before the education provider revealed that it had entered into a $55 million purchase agreement with Washington Post subsidiary Kaplan.

Tribeca shareholders are expected to approve Kaplan’s offer in April.