What are the key differences between a Wrap and a Fund Supermarket? Investment choice. A Fund Supermarket usually offers only funds (OEICs and Unit Trusts). A Wrap also offers Stock Exchange securities (including Exchange Traded Funds and Investment Trusts).
Adviser remuneration. Wrap platforms credit fund manager rebates to the client account and correspondingly debit both platform charges and adviser remuneration as agreed with the client. Fund Supermarkets retain fund manager rebates which are not usually disclosed.
Cash account. Wrap platforms offer a cash account that is fully integrated with the trading functionality and pay interest. Many Fund Supermarkets have no cash account.
Which tax wrappers are available on the Ascentric platform?
Ascentric offers both ISA and General Investment Accounts. Access is also provided to a growing list of third party product providers including SIPPs, SSASs, Offshore Bonds and Onshore Bonds.
Is there a minimum investment required?
Yes. The initial client investment needs to be at least £5,000. There is no minimum for subsequent investments.
Is there a minimum cash requirement?
Yes. 1% of the portfolio must be held in cash subject to a minimum of £300 and a maximum of £1,000. This is required to cover any charges and adviser remuneration.
What investment options are available?
There are three options:
Ad hoc client portfolio – you agree asset allocation and fund selection with the client.
Model portfolios – you agree these and fund selection with the client.
Discretionary Fund Manager (DFM) – you agree with the client that a DFM will manage the portfolio on the Ascentric platform. In this case a separate Adviser Firm account will have to be set up with the DFM name to allow the DFM access to the respective client accounts. Ascentric will collect fees and pay the DFM as directed via the client set-up form.
What is the platform initial and trading charge?
There is no initial charge. Each electronic trade will be charged at £12.50. For any non-electronic trade the charge is £20.00.
When is adviser charging deducted from the client account and paid?
Initial adviser charging is deducted from the client account and paid to the adviser weekly in arrears on a weekly basis. Annual remuneration is deducted from the client account and paid to advisers monthly 10 days after month end.
What can be done to compel re-registration?
Ascentric is lobbying the FSA to compel re-registration pointing out that this is a direct contravention of TCF principal 6 which states there should be no unreasonable constraints to changing products. Citywire is conducting a campaign to encourage a change of behaviour. Adviser firms can register their support through Citywire.
What is the average length of time taken to process a transfer of funds?
There are no set guidelines on how long a transfer should take and much of the process is not in our control. We do however, endeavour to complete all transfers in a timely basis - we will chase providers on your behalf to try to complete the process as quickly as possible. You can normally assume between 2 and 4 weeks but exceptions can take far longer.
Which research tools can I use with Ascentric?
The following tools are free of charge:
Morningstar Portfolio Builder Tool
Morningstar ‘Licenced Tools’ including ‘Quick Rank’ and X-ray tools and fact sheets
Funds Library – fund factsheets, report and accounts and key features available in PDF format
Financial Express – price feeds and LSE fact sheets
We also offer Financial Express Analytics portfolio analysis and reporting tool that is available at a special discounted price.
What is an ‘electronic’ trade?
For funds this is where the trade is instructed via the website and the routed to the fund manager via the EMX interface – most large fund managers offer this interface.
London Stock Exchange securities including ETFs are traded electronically through a ‘Proquote’ interface with a number of Retail Service Providers also known as ‘Market Makers’.
What is a ‘non-electronic’ trade’?
Typically these include:
Trades instructed by adviser or client via telephone, email or paper
Trades which Ascentric have to trade by telephone, email or fax
Trades where the client demands a paper Contract Note
What are the costs for trading funds?
Each electronic deal (using EMX or Crest and an electronic Contract Note) - £12.50, any other deal is £20.00. Please refer to the Wrap charges schedule.
Am I eligible to apply for The Ascentric Pension Account (APA)?
You may apply for an APA if the answer to one or more of the following is yes:-
are you a UK resident individual (resident for tax purposes)?
are you a crown servant whether abroad or not?
are you the spouse or civil partner of a crown servant abroad or not?
Do you have a UK registered pension plan and wish to transfer the benefits from that to an APA?
Yes, subject to agreement from IFDL, your APA is able to accept transfers from other pension schemes, in cash and/or other assets.
Can I invest in a commercial property within the APA?
No, the APA does not currently support the holding of a commercial property as part of your investment portfolio.
When can I take income from my APA?
The minimum age for taking income from your APA is currently 50, although this rises to age 55 on 6th April 2010. You do not need to have retired to take an income from your APA.
If you are suffering ill health or your transfer is subject to certain transitional legislation, you may be able to take retirement benefits at an earlier date. Please contact your Financial Adviser in the first instance.
You can use some, or all, of your USP/ASP fund to buy an Annuity at any time.
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