A paraplanner is targeting advisers with a platform cost comparison tool.
The online tool, called Wrapcompare, launched by Lime Outsourced Paraplanning director and owner Rebecca Lucas (pictured), aims to help advisers quickly obtain comparisons of platform costs.
It is “driven by a powerful maths engine which takes into account the myriad of provider charges and how these are applied”, a press release said.
Advisers using Wrapcompare input their client’s name, how much they want to invest in each wrapper, the term and projection rate and the system calculates a projected value for each platform provider.
Calculations are done on a month-by-month basis with the tool adjusting the tiered platform charges as the value of the investment changes. It also accounts for minimum charges and charge caps that only apply to certain platform providers.
Comparable with Comparetheplatform?
CWC Research director Clive Waller said Wrapcompare isn’t a unique proposition. He notes that research house Fundscape provides a similar service via its Comparetheplatform website.
But he adds that platform fees are typically much less than the fees charged by advisers and fund groups. “The last thing an adviser should do is choose a platform specifically for the client.”
Platform costs and charges have been thrust into the spotlight following the implementation of Mifid II. Under the new rules providers are required to convert discretionary fund management, advice and investment charges into a pounds and pence figure.
However many have been critical of these measures, with AJ Bell founder Andy Bell telling Portfolio Adviser investors risk being overwhelmed with information.
Platform due dilifence prompted lightbulb moment
Lucas said she had a “lightbulb moment” two years ago when she was working out the annual platform due diligence for one of her clients.
“I needed a way to clearly and easily compare costs of different platforms with different scenarios and there was nothing around that gave me exactly what I wanted,” she said. “So I decided to build my dream tool both to give me the comparison tool I needed and in the hope it would help others too.”
Advisers will also be able to filter out other providers, build their own bespoke charges in and apply discounts they have with platform groups.
Lucas said these features were added in because of conversations she had with advisers and paraplanners during the development phase.
“We had comments such as ‘What about bespoke platform pricing?’, ‘What about having a filter so we only search a set number of providers?’ We’ve taken this feedback and made sure the tool can accommodate it. I want the tool to fulfil people’s needs so that it really helps them with their research on a daily basis.”
