Portfolio management specialist Praemium has struck partnership deals with Super Concepts and Cavendish Superannuation to provide the external self-managed super fund (SMSF) administration service for its SmartWrap platform.
"Super Concepts and Cavendish Superannuation are two of the largest self-managed super fund administration businesses in the country. The reason we selected them was because of their size, they are virtually household names now in that space and they have the ability with their scale to provide the service at a reasonably low price built in to the fee structure of the wrap," Praemium director Warren Gibson told InvestorDaily at his firm's Business Solutions Conference in Sydney yesterday.
"So at 49 basis points tiering down we are able to say you can now have a self-managed super fund on a platform with the administration taken care of so it's not a nightmare for the financial planner."
Gibson said a significant number of other administration advisers expressed interest in becoming a third-party provider, but were not considered due to their lack of scale.
However, these organisations, which are Praemium users, were placed on a secondary list and can have clients referred to them as alternatives to the default options.
"The level of excitement is really, really high, and one firm I believe has written to their financial planning clients to tell them about this whole project, so I'm buoyed by the fact we might be able to get enormous leverage like this," Gibson said.
Originally, Praemium was looking to sign up three default administration providers and Gibson admitted there was still room to partner with another firm, provided they meet the right criteria.
"We're looking for firms that have somewhere in the vicinity of 4000 or 5000 self-managed super funds that they're administering. But yes, there is still an opportunity there," he said.
