Financial Advisors' Views of Wrap Platforms - Market Research Report On Aarkstore Enterprise
Introduction
Financial advisors appear to have accepted wrap technology as a potentially lucrative tool in helping them achieve considerable efficiency and lower costs of business. Wrap technology is also a useful tool in helping IFAs achieve RDR outcomes. Providers must ensure a high level of wrap service and offer support to IFAs in adopting the technology in order to save the value of business.
Scope
*Reveals IFAs' ratings of life and pension providers and asset managers on their levels of service and quality of products.
*Comprehensive analyses of IFAs' usage of wrap platforms and their future intentions on levels of new business to be conducted through wraps.
*Identifies products and services that advisors seek from their wrap service.
Highlights
Advisors are planning to actively re-register their direct clients onto wrap platforms in the next 12 months, with 60% indicating that they agree to do this. Nearly a tenth of advisors also are planning to migrate up to 100% of their overall client base onto wrap platforms in the coming year.
The report uses primary data to identify advisors' views on the competitive dynamics of the UK wrap market. It also assesses the strategies wrap providers must seek to ensure future success in the market.
Reasons to Purchase
*Access the results of Datamonitor's Q1 2010 IFA survey.
*Identifies the products IFAs intend to conduct most and least through wrap platforms in the next 12 months.
*Assesses IFAs' concerns on the challenges faced by the UK wrap market under the RDR.
Table of Contents :
Overview 1
Catalyst 1
Summary 1
Methodology 1
Executive Summary 2
IFAs are predominantly small businesses handling low case sizes of below 5000 2
Advisors view Aviva and Invesco Perpetual as offering the best level of service 2
Providers who provide a high quality wrap service will ensure their future success 2
Table of Contents 3
Table of figures 4
Table of tables 5
INTRODUCTION TO THE Q1 2010 SURVEY 6
The majority of IFAs are small, single outlet firms handling average case sizes of less than 5000 7
Advisors perceive some life and pensions providers as better levels of service than others 8
Aviva is rated positively by IFAs for its level of service 9
Standard Life is second to Aviva in advisor rankings for providers' levels of service 9
Invesco Perpetual continues to their reign for levels of service to IFAs among their asset management peers 9
Aviva, Legal & General and Fidelity are viewed more favorably over other providers for their quality of products 10
Aviva is viewed positively by advisors for the strength of their product range 10
Advisors also rank the quality of Legal & General's products highly compared to others 11
Fidelity remains popular among IFAs over other asset managers for the quality of products offered 12
ADVISORS' CURRENT AND FUTURE USAGE OF WRAP PLATFORMS 13
Wrap technology is the way forward for promoting and selling savings and investment, and life and pension products 13
Wrap platforms are an efficient means for administering the whole client portfolio 13
Wrap platforms have evolved from the funds supermarkets of the late 1990s 13
Datamonitor developed a definition for a 'pure wrap' that has become a market standard 14
Advisors are using wraps for their entire range of life and pensions products 14
Stocks and shares ISAs, and unit trusts and OEICs are obvious product choice that IFAs expect on a wrap platform 15
Regulatory reforms such as A-day has pulled Sipp investments onto wraps 17
The tax complexity of bonds and income drawing options are making a wrap service attractive to IFAs 18
Income drawdown is a natural choice for wraps over annuity products among IFAs 19
Pensions reform may attract more assets onto wraps in the future 19
Stocks and shares ISAs will continue to be the product that IFAs are most likely to distribute through wraps in the next 12 months 19
Future segmentation of the pensions market might draw IFAs to focus on high net worth investors for wrap platforms 20
Individual SIPPs may prove to be a less difficult sale as customers continue to desire a level of control over the way their assets are handled 21
Distributing SIPPs on an efficient wrap platform will give investors increased tax-efficiency and convenience 21
Advisors are not placing a priority to distribute annuities through wraps in the next 12 months 22
However, this does not spell the end for investment bonds 23
THE FUTURE SUCCESS OF UK WRAP PROVIDERS 24
The identification of advisors' needs is crucial in launching a successful wrap proposition 24
Advisors desire a full array of funds on a wrap platform to provide investment flexibility for clients 24
Competitive prices for clients is also an equally important factor for IFAs when using a wrap service 26
Providers must place less efforts in branding exercises and focus on delivering full functionality and quality service 26
Wrap providers must match advisors' expectations of full functionality through a wrap service 28
Advisors expect a full suite of financial tools on a wrap platform 29
Advisors still want even more products made available online 30
The full advantage of wrap is through placing legacy business on platforms as well as new business 31
Providers will need to look towards providing excellent wrap services to differentiate from peers in a consolidated market 32
Wrap platforms may have reached a proliferation peak 32
The emergence of IFA-developed wraps is blurring the boundary between manufacturer and distributor 33
Advisors believe that wrap platforms should be subjected to the same 'whole of market' test as investment products 34
Value-focused concerns keep advisors skeptical regarding wrap propositions 35
The magnitude of picking the right wrap proposition delays uptake 35
APPENDIX 36
Data 36
Definitions 43
Single premium policy 43
Regular premium 43
Wrap accounts 43
Product definitions 43
Life-based savings products 43
Life assurance 43
Single premium life 44
With-profit bond 44
Unit-linked bond 44
Income and growth bonds 44
Guaranteed equity bonds 44
Distribution bonds 44
Purchased life annuities 44
Other bonds 45
ISAs 45
Matrix-Data definitions 45
IFA firm types 45
Further reading 45
Ask the analyst 46
Datamonitor consulting 46
Disclaimer 46
For more information please visit :
http://www.aarkstore.com/reports/Financial-Advisors-Views-of-Wrap-Platforms-63037.html
Financial Advisors' Views of Wrap Platforms - Market Research Report On Aarkstore Enterprise
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