Deciding which wrap proposition to choose will be one of the most important decisions an IFA makes this year, according to Nucleus boss David Ferguson.
Founder and chief executive of the IFA-owned wrap, Ferguson says advisers in 2008 face a serious question when it comes to determining which proposition to adopt.
“Those advisers looking to make a decision on wrap in 2008 face a clear choice: either associate with a large product provider offering a business platform all wrapped up in a goody bag of marketing support, or invest in an IFA-owned and controlled wrap such as Nucleus,” he says.
“Advisers have spent the last 20 or 30 years creating wealth for life insurance companies. It’s time they created some for themselves.”
Ferguson feels the wrap choice could be the “most important business decision an IFA makes” and appeals to advisers to take a look at the ‘independent’ option.
“I implore them make it carefully and to collectively take complete control of the market and their clients’ affairs,” he says.
Standard Life Savings communications head Mark Polson agrees 2008 will be a significant year for wrap, but says there is space in the market for every proposition.
While he understands the “attraction” of an IFA-owned offering, Polson says choosing a proposition just because it has a certain name attached is “crazy”.
“The nature of wrap is that it is constantly innovating and to that point you need to have access to significant capital backing,” he says.
“Just say Chancellor Alistair Darling makes changes to regulation a few months from now, you have to know that the partnership you have has the scale to meet the challenge.
“No matter what is said, wrap is about a few key ideas: scale, service, experience and capital.”
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