Powerwrap chief executive Cormac Heffernan told ifa that advisers who don’t use a platform often find managed funds problematic because they currently have to fill out a separate form for each application, and unless they use a full administration platform they would still get lumped with doing the administration through their software.
“If IFAs are on a platform but do the administration themselves, this will save them a fortune,” he said.
The offering will allow advisers to transact ASX-listed securities, wholesale managed funds and term deposits with transaction fees but no FUM-based administration fees, according to Powerwrap.
Transaction costs for the service will be $20.50 for managed funds, 0.11 per cent with a minimum of $19.80 for ASX-listed securities, and no charge for term deposit transactions.
Mr Heffernan said the service is the first of its kind in the market.
“It gives financial advisers the ability to administer client portfolios using their tools of choice to execute trades with no associated FUM-based fees,” he said.
“This is a far cry from the way platforms have operated in the past, with advisers needing to sign clients up for a full service offering even if one wasn’t required. We acknowledge that one size does not fit all.”
The service has access to over 200 managed funds with a further 1,000 available upon request, all listed securities on the ASX, Separately Managed Accounts, a range of term deposits and cash accounts, margin lending administration and a broad range of insurance providers, according to Powerwrap.
It also includes an SMSF Accounting and audit service and a reporting engine.
