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Wrap to take centre stage in 2008 says Ferguson
Following a period of provider posturing wrap is set to take centre stage in 2008 according to Nucleus founder and chief executive David Ferguson.
Ferguson believes that while 2007 was an important year for wrap in terms of development and education, 2008 will be the year it achieves mainstream status as its take-up and use rapidly increases among Independent Financial Advisers (IFAs). While this process develops, Ferguson expects to see a clear divide emerge within the wrap market as IFAs choose between provider- and adviser-led propositions.
Ferguson, who set-up IFA-owned Nucleus just over 12 months ago, believes this seemingly simple choice could prove to be one of the most important business decisions many IFAs will ever make. As a result he urges them to think long and hard before committing to any one proposition.
While in essence wrap is simply a piece of technology that improves client administration, the propositions on the market differ enormously and as a result the choice an IFA makes will not only affect the service they offer clients but also reveal a great deal about the value they place on true independence.
Commenting, Ferguson said: “After several years in the wings I believe wrap will finally take centre stage in 2008. As well as being the natural partner to genuine open architecture the right proposition has the potential to significantly affect an IFAs business both in terms of improved client service and profitability.
“Those advisers looking to make a decision on wrap in 2008 face a clear choice: either associate with a large product provider offering a business platform all wrapped up in a goody bag of marketing support, or invest in an IFA-owned and controlled wrap such as Nucleus. It could prove to be the most important business decision an IFA makes and I implore them to make it carefully and take complete control of the market and their clients’ affairs.”
Ends
For further information please contact:
David Ferguson, Nucleus, 0131 226 9800
Andrew Appleyard, MRM, 020 3008 6061 / 07909 684 468
Emma Wylie, MRM, 020 3008 5223 / 07766111824
Notes to editors:
Nucleus Financial Group is a new type of financial services business designed to challenge the existing structure of the sector.
Launched in December 2006, Nucleus is backed and designed by a consortium of leading Independent Financial Adviser (IFA) firms that represent clients with over £7bn of investible assets.
By employing end-to-end wrap technology, wholesale investment fund pricing,
class leading portfolio management tools and advanced financial planning
principles the business has created an entirely new proposition that allows
advisers to become more aligned with their clients than ever before.
With transparency and customer respect very much at the centre of the
proposition Nucleus offers access to the universe of funds, tax wrappers
as required and best in class technical, fiscal and legal expertise.
The company was rewarded for its ground-breaking approach at the Scottish Financial Enterprise (SFE) Innovators Awards held in Edinburgh on 29 November 2007. Nucleus was commended for its transparent pricing structure and for shifting the power balance from large institutions to IFAs, and in doing so challenging the industry status quo.
The management team is led by David Ferguson and Philip Martin, chief executive and business development director respectively, and offers extensive experience across all areas of the UK retail financial services market, including onshore and offshore life assurance, asset management and banking and in the actuarial, product development, administration, IT, finance, operations and marketing disciplines.
