Portfolio administration provider Praemium has lodged an application with the Financial Services Authority in the UK for authorisation of a new range of risk-based sub-fund portfolios .
The five new funds are sub-funds of SMARTfund and will replace the original 'proof of concept' sub-funds.
The sub-funds will be managed by research house Old Broad Street Research (OBSR).
"Risk-based models are rapidly becoming the dominant operating model to meet the UK's tough new regulatory and compliance requirements," Praemium chief executive Arthur Naoumidis said.
"They help to streamline the investment process, increase compliance controls and ensure fair treatment of customers."
The Australian Securities Exchange-listed company provides online portfolio administration services, market data systems and separately managed account technology to wrap providers, financial planners, accountants, wealth managers, stockbrokers and self managed superannuation fund administrators in Australia.
Its flagship product, V-Wrap, currently administers more than $28 billion.
Praemium expects to receive authorisation within six to eight weeks.
The funds won't be available to Australian investors, thought the company will be introducing similar risk-based funds in Australia in the first half of next year, Naoumidis said.
The technology for the risk-based model of these funds will come from FinaMetrica.
