An adviser tool which calculates and compares the platform costs for individual clients has launched to market.
Wrapcompare, launched today (November 21), allows advisers to work out the cost of different platforms on an individual client basis and compare the findings across the market.
The tool has been designed and launched by Rebecca Lucas, director of Lime Outsourced Paraplanning, who said she had a “lightbulb moment” when doing annual platform due diligence for her clients.
Ms Lucas said: “I needed a way to clearly and easily compare costs of different platforms with different scenarios and there was nothing around that gave me exactly what I wanted.
“So I decided to build my dream tool both to give me the comparison tool I needed and in the hope it would help others too.”
She said the tool needed to be “accurate, quick and easy” in order to work as she wanted people to be able to pick it up from ‘day one’.
According to Ms Lucas, Wrapcompare takes into account the range of provider charges and the different ways these are applied to compare the overall cost of using the platform.
To use the tool the adviser or paraplanner inputs a client’s name, how much they want to invest in each wrapper, the term, and projection rate. Wrapcompare then churns out the projected value for each provider.
The calculations are done on a month-on-month basis, meaning the tool adjusts tiered platform charges as the value of the investment changes each month, and considers account minimum charges and charge caps which apply to certain providers.
Other features include a filter function to sort through providers, a bespoke provider function which means advisers can add their own charge and a discount function, allowing direct application of a discount to a provider.
The tool also provides PDF documents which show the workings and the outcome for an adviser’s compliance documents.
Ms Lucas said feedback from advisers and paraplanners had been key during the development process, with a number of features added along the way.
Martin Bamford, director of client education at Informed Choice, said: “It’s brilliant to see innovation like this within the profession.
"WrapCompare should make life easier, to carry out due diligence and demonstrate suitability before recommending wrap platforms to clients.
“Any tool which makes it easier to complete research and allows financial planners to spend more time on client facing activity gets my vote.”
imogen.tew@ft.com
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