Privately-owned wrap developer simpleWrap has unveiled a full-service administration wrap with a flat fee regardless of account balances.
“For people with $200,000 or $250,000 or more on a wrap, that’s where we start to look really attractive,” simpleWrap director Krystyna Weston told InvestorDaily.
Weston said she believed the flat-fee wrap was a first for Australia.
“There will be no percentage or asset-based fees for the administration service, and investors will pay an agreed and set fee for the services that they use,” she said.
“We believe that this is a more equitable approach and, although it sounds like simple commonsense, we are unaware of any full-service wraps applying this principle.”
She said many financial advisers were revisiting their business models in the run-up to the government’s proposed Future of Financial Advice (FOFA) reforms.
“In conjunction with Equity Trustees Superannuation (ETS), which will provide administration support, we are able to deliver a service to clients that is transparent, ethical, free of conflicts as well as being simply and fairly priced.”
She said she and partner Paul Robson were in talks with about 200 practices that were conducting due diligence on the product.
Equity Trustees Superannuation (ETS) will provide full administration and platform services for simpleWrap.
“We already provide an outsourced administration-only service in superannuation and this is an important step in the development and further expansion of our superannuation and investment platform business, supporting the sort of changes investors are expecting from the industry,” ETS head Adrian Young said.
ETS operates primarily through superannuation master trusts: Equity Super, Freedom of Choice Superannuation Masterfund and the recently acquired OAMPS Super Fund (which has now been integrated with Equity Super and renamed Apex Super).
In total, ETS has about $950 million of funds under management, and in its master trusts and administration-only service currently manages 55,000 member accounts.
