Wrap account
Encyclopedia
A wrap account is a means of consolidating and managing an investor
's investment portfolio
and financial plans online. Wrap fee services are offered by many financial instutions. Often wrap services are offered for a fee or a series of charges. These charges cover all administrative and management costs. This type of service is what is also known as an investment platform or financial platform service.
Wrap services originated in Australia and New Zealand and then came to the UK in about 2000. , approximately £110 billion of assets are held on wrap services in the UK. Transact was the first Wrap service to come into the UK market approximately 11 years ago. With the forthcoming RDR - Retail Distribution Review - being undertaken by the FSA
in the UK more investors are likely to move their investments onto Wrap Services by the end of 2012 if they have a financial adviser.
The better Wrap services or accounts usually enable investors - usually with the advice of a financial adviser - to select from an extensive range of UK and offshore funds and assets – including unit trusts, OEICS, investment trusts, equities, cash, structured products, external fund managers and other investment products. The service can then be used to allocate these assets seamlessly to the most appropriate tax wrappers – including ISAs and pensions plans. Both investors and advisers can then view a holistic picture online of the complete Portfolio – all in one place, from anywhere in the world – 24/7.
The potential benefits to investors are:
Transact
Investor
An investor is a party that makes an investment into one or more categories of assets --- equity, debt securities, real estate, currency, commodity, derivatives such as put and call options, etc...
's investment portfolio
Portfolio (finance)
Portfolio is a financial term denoting a collection of investments held by an investment company, hedge fund, financial institution or individual.-Definition:The term portfolio refers to any collection of financial assets such as stocks, bonds and cash...
and financial plans online. Wrap fee services are offered by many financial instutions. Often wrap services are offered for a fee or a series of charges. These charges cover all administrative and management costs. This type of service is what is also known as an investment platform or financial platform service.
Wrap services originated in Australia and New Zealand and then came to the UK in about 2000. , approximately £110 billion of assets are held on wrap services in the UK. Transact was the first Wrap service to come into the UK market approximately 11 years ago. With the forthcoming RDR - Retail Distribution Review - being undertaken by the FSA
Financial Services Authority
The Financial Services Authority is a quasi-judicial body responsible for the regulation of the financial services industry in the United Kingdom. Its board is appointed by the Treasury and the organisation is structured as a company limited by guarantee and owned by the UK government. Its main...
in the UK more investors are likely to move their investments onto Wrap Services by the end of 2012 if they have a financial adviser.
The better Wrap services or accounts usually enable investors - usually with the advice of a financial adviser - to select from an extensive range of UK and offshore funds and assets – including unit trusts, OEICS, investment trusts, equities, cash, structured products, external fund managers and other investment products. The service can then be used to allocate these assets seamlessly to the most appropriate tax wrappers – including ISAs and pensions plans. Both investors and advisers can then view a holistic picture online of the complete Portfolio – all in one place, from anywhere in the world – 24/7.
The potential benefits to investors are:
- They only have one counter-party to deal with. Saving a lot of time dealing with a diverse range of fund managers, financial institutions and other product providers
- Investors can view their entire Portfolio all in one place, enabling them to keep track of their current financial position on a daily basis, however complex their financial affairs are
- They also receive a single consolidated annual tax statement, comprehensive six-monthly statements, documentation of all purchases, sales, deposits and withdrawals
- The most professional Wrap services make no charge for re-registering assets in specie, on or off the platform.
See also
- Fund Wrap
- Ascentric
- AXAAXAAXA S.A. is a French global insurance group headquartered in the 8th arrondissement of Paris. AXA is a conglomerate of independently run businesses, operated according to the laws and regulations of many different countries. The AXA group of companies engage in life, health and other forms of...
Elevate - Hargreaves LansdownHargreaves LansdownHargreaves Lansdown plc is a financial service company based in Bristol that sells funds and shares and related products via its website and through the post to retail investors in the United Kingdom...
- Novia Financial
Transact
- Standard LifeStandard LifeStandard Life plc is a long term savings and investment business, with headquarters in Edinburgh and operations across the globe. It has 1.5 million shareholders in more than 50 countries and over 6 million customers.-History:...
Wrap
External links
- Wrap it up: the "Blackberry" of financial services? By Jennifer Hill, Personal Finance Correspondent
- Nucleus and Transact wrap up poll victory Emma Ann Hughes. Magazine: FinancialAdviser. Published Thursday , June 11, 2009
- FSA - Financial Services Authority - official site.
- FSA publishes platform proposals. 17 November 2010.