The trend for increased investor demand for more transparency and control over their financial health will continue in 2013, with an expected acceleration following the Future of Financial Advice (FOFA) requirement for financial advisers to give full disclosure of fees charged to clients.
Inadequate retirement funding in the face of increasing longevity and question over the value for money investors are receiving from wealth management professionals are also expected to bolster the trend.
“In this new climate, advisers who provide clarity and transparency of fees and underlying investments will be better able to build trusting and long-term client relationships,” Praemium Australia commercial head of platform Andrew Varlamos told InvestorDaily.
“The easiest and best way to do this is by incorporating into their business the right investment administration and customer relationship management (CRM) system.
“This is not just a trend for 2013, but a structural shift that will permanently impact everyone in the financial services industry,” he said.
Mr Varlamos explained that Praemium is well placed to meet transparency demand following the development of its new cloud-based CRM system and the confirmation of the firm’s role as responsible entity (RE) for BlackRock’s Investment Management separately managed accounts (SMA) scheme.
“By mid-2013 we will be able to provide financial advisers with an independent and transparent platform, with a built-in CRM functionality. Our entire focus for 2013 is on helping the adviser to become more efficient, profitable and transparent,” he said.
The listed portfolio administration specialist took over BlackRock’s SMA operations in the week beginning 17 December 2012, following its registration with the Australian Securities and Investments Commission as the responsible entity.
The SMA scheme will be renamed The Praemium Customised Portfolio Service upon the official appointment of Praemium.
