PlatformsSep 23 2014

Another wrap to launch white label DIY service for advisers

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Wrap platform Ascentric has confirmed it is to roll a white label direct-to-consumer service for independent financial advice firms to embed into their websites in order to build relationships with those customers not yet ready to pay for advice.

Speaking to FTAdviser, Hugo Thorman, Ascentric’s managing director, said that testing was underway with adviser clients, but that there was no set date yet for full rollout.

“The idea is to have a service that adviser firms can build into their websites, so that interested consumers can access something via a few clicks, without having to go off to Hargreaves Lansdown.

“Early on they may not be able to pay, but once they’ve built up a bit of money in their Isa and they’re not sure what to do with it, they’ll come back to where they started when they need proper financial advice.”

The service is similar to that Cofunds revealed it was launching in January of this year, when it confirmed to FTAdviser it would increase investment into its direct offering to help advisers keep smaller pot clients on the books until their assets grow enough to make advice worthwhile.

At the time the Legal and General-owned platform said upwards of 300 advice firms have already signed up to the service.

The adviser-run direct-to-consumer service is part of a wider investment in technology by Royal London-backed Ascentric, which saw first half profits hit by £1.6m spent on moving platform provider to service provider Bravura.

Dubbed ‘Project Accelerator’, the technology upgrade was “essential to keep pace with the rest of the market”, according to Mr Thorman.

He said: “The work undertaken will improve scalability and functionality, help lower the cost of further developments, and ensure we can continue to service the demands of our clients and advisers.”

Mr Thorman said that the firm has an emphasis on the “upmarket adviser” that is closer to the private client stockbroker end of the market and requires a wider selection of asset classes and product wrappers.

He said: “Because our clients average assets of £150,000 as opposed to around £80,000 for other independent platforms, there are subtle differences to the way we operate, but it becomes harder to differentiate as technology automates a lot of things and most platforms initiate similar upgrades.”

Mr Thorman also commented that the next big challenge and opportunity was seeing which wrap provider was most ready for next April.

“Everyone will win, but some more so than others; it’s a race to see who’s proposition is best placed to take advantage of the at-retirement reforms.”