Wrap Platforms Explained
A "wrap" is a secure internet-based account that lets you and your clients view the current performance of their investments at any time. It is called a "wrap" because client investments can be wrapped up in a single account.
The aim of a wrap is to allow advisers to select and purchase investments from a wide range of solutions. These investments may sit within wrappers that enjoy certain tax advantages and typically include ISAs, SIPPs, Personal Pensions and Investment Bonds. Assets not held in a specific tax wrapper are held within a general investment account.
Wrap platforms generally differ from fund supermarkets in:
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offering access to a wide choice of investments including OEICs, unit trusts, ETFs, investment trusts, structured products and equities
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operating on an "unbundled" charging basis. This typically sees the fund manager rebates go directly to the client account
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providing cash management facilities that are integrated with the trading functionality of the platform and pay interest
By holding all investments in one place, you will be able to see everything at a glance, giving you a clearer view of your client base and your individual clients. This should cut down the paperwork, making account management easier and allowing you to spend more time advising clients.
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