New Model Adviser® citywire.co.uk | 9 June 2008 27 Adviser comment Alan Steel has been placing client assets on Selestia almost since the platform’s inception, but says he is now ‘very nervous’ after administration failures dogged the revamp, which will ultimately lead to a full Skandia/ Selestia merger. Steel, chairman of Alan Steel Asset Management, became disillusioned with the platform after repeated difficulties including the loss of post and online transactions failing to complete, but admitted the platform had shown some improvements since the early days of the revamp. But he is unhappy that promises to keep the Selestia offering separate from the Skandia platform were not kept. ‘The Skandia product was aimed at a much lower end of IFA,’ he said. ‘We were assured they were keeping it separate. This is a classic [Skandia owner] Old Mutual decision-making process. They promise something and then they dump it,’ he said. Steel said he plumped for Selestia when picking a platform because of the people behind the technology, citing his respect for Bill Vasilieff who he has known for over 20 years. Vasilieff’s departure when the two platforms merged was a blow for Steel, but he still has a good word for Selestia’s charging structure. He said the platform had been built on an inexpensive charging structure, and that it had remained competitive. He also singled out the platform’s array of tools as another strong point. WRAP FACTFILE This week we focus on the Skandia/Selestia platform offering, one year on from the launch of Selestia Investment Solutions to which Skandia clients will ultimately transfer. Mid-summer mergers Adviser Support Individual users Selestia Investment Solutions (SIS) -12,427 Skandia Wrap - 40,556 User firms SIS– 3,218 Skandia Wrap 20,911 Assets on the platform £30 billion Who are the backers? Old Mutual Products and Funds Funds available SIS – over 900 Skandia Wrap – over 400 Do you offer retail fund classes? 3 Can you trade and hold alternative assets? 2 What onshore wrappers are offered? ISA, PEP, Collective Investment Account, Collective Retirement Account, Collective Investment Bond What offshore wrappers are offered? Offshore Collective Investment Bond What other wrappers are offered? Skandia Sipp Do all of the wrappers offer whole of market investments? 2 How many funds are the platform providers own funds? We offer a range of funds from Skandia Investment Management Limited Tools Fact find 2 Financial goal setting 2 Risk questionnaire 3 Risk profiling 3 Fund selection tools 3 Model portfolios 3 Client summary of assets/risk/choices 3 Rebalancing 3 Adjustment of portfolios 3 CGT reporting 2 Portfolio analysis 3 Charges Bundled or unbundled Bundled Full rebates from the AMC charge? 2 Initial Charges vary from product to product Do you levy switching charges? If so, what are they? No charges Additional wrapper charges for more complex wrappers? No Dealing charges for direct equity and fixed interest investment? n/a Interest rate paid on the cash account? 2.5% gross Does the wrapper charge decrease with increased assets? SIS - £50 Investor charge, Skandia Wrap charges vary by product. Online functionality Is all business submitted and carried out online or is there a wet signature requirement? New business is fully online Research tab with investment data and news etc? 3 Are forms pre-populated? 3 Can clients view their holdings online? 3 Can advisers track business in progress? 3 Can advisers create ‘to do’ lists 3 Legacy & reregistration Is it possible to include new business written outside the platform on the platform? 2 Do you allow reregistration on and off the platform? Reregistration in is offered on ISA/PEP/CIA on SIS; out is available on SIS via CIA and MultiFUND accounts. If not, do you intend to in the next five years We are actively working with other platform providers, through the UK Platform Group, to find a solution to re-registration Links Do you have any links to other platforms? 2 Links to technology companies’ front and/or back office systems? 1st Software, Quay Software, Plum Software, Bluecoat Software, JCS, IntelliFlo, Fairs, Durrell Software. Transition to the new model What measures are in place to ensure the platform helps advisers to move to a fee-based business model? Flexible remuneration options Do you give advisers the option to take less initial commission and more annual trail or determine their own remuneration with clients? Yes How and when is annual trail paid? Varies by product
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New Model Adviser®
citywire.co.uk | 9 June 2008 27
Adviser comment
Alan Steel has been placing client assets on Selestia almost since the platform’s inception, but says he is now ‘very nervous’ after
administration failures dogged the revamp, which will ultimately lead to a full Skandia/Selestia merger.
Steel, chairman of Alan Steel Asset Management, became disillusioned with the platform after repeated diffi culties including the loss of post and online transactions failing to complete, but admitted the platform had shown some improvements since the early days of the revamp.
But he is unhappy that promises to keep the Selestia offering separate from the Skandia platform were not kept.
‘The Skandia product was aimed at a much lower end of IFA,’ he said. ‘We were assured they were keeping it separate. This is a classic [Skandia owner] Old Mutual decision-making process. They promise something and then they dump it,’ he said.
Steel said he plumped for Selestia when picking a platform because of the people behind the technology, citing his respect for Bill Vasilieff who he has known for over 20 years.
Vasilieff’s departure when the two platforms merged was a blow for Steel, but he still has a good word for Selestia’s charging structure.
He said the platform had been built on an inexpensive charging structure, and that it had remained competitive.
He also singled out the platform’s array of tools as another strong point.
WRAP FACTFILE
This week we focus on the Skandia/Selestia platform offering, one year on from the launch
of Selestia Investment Solutions to which Skandia clients will ultimately transfer.
Mid-summer mergers
Adviser Support
Individual users Selestia Investment Solutions (SIS) -12,427 Skandia Wrap - 40,556
User fi rms SIS– 3,218 Skandia Wrap 20,911
Assets on the platform £30 billion
Who are the backers? Old Mutual
Products and Funds
Funds available SIS – over 900Skandia Wrap – over 400
Do you offer retail fund classes?
Can you trade and hold alternative assets?
What onshore wrappers are offered? ISA, PEP, Collective Investment Account, Collective Retirement Account, Collective Investment Bond
What offshore wrappers are offered? Offshore Collective Investment Bond
What other wrappers are offered? Skandia Sipp
Do all of the wrappers offer whole of market investments?
How many funds are the platform providers own funds? We offer a range of funds from Skandia Investment Management Limited
Tools
Fact fi nd Financial goal setting Risk questionnaire Risk profi ling Fund selection tools Model portfolios Client summary of assets/risk/choices Rebalancing
Adjustment of portfolios CGT reporting Portfolio analysis
Charges
Bundled or unbundled Bundled
Full rebates from the AMC charge?
Initial Charges vary from product to product
Do you levy switching charges? If so, what are they? No charges
Additional wrapper charges for more complex wrappers? No
Dealing charges for direct equity and fi xed interest investment? n/a
Interest rate paid on the cash account? 2.5% gross
Does the wrapper charge decrease with increased assets? SIS - £50 Investor charge, Skandia Wrap charges vary by product.
Online functionality
Is all business submitted and carried out online or is there a wet signature requirement? New business is fully online
Research tab with investment data and news etc?
Are forms pre-populated?
Can clients view their holdings online?
Can advisers track business in progress?
Can advisers create ‘to do’ lists
Legacy & reregistration
Is it possible to include new business written outside the platform on the platform?
Do you allow reregistration on and off the platform? Reregistration in is offered on ISA/PEP/CIA on SIS; out is available on SIS via CIA and MultiFUND accounts.
If not, do you intend to in the next fi ve years We are actively working with other platform providers, through the UK Platform Group, to fi nd a solution to re-registration
Links
Do you have any links to other platforms?
Links to technology companies’ front and/or back offi ce systems? 1st Software, Quay Software, Plum Software, Bluecoat Software, JCS, IntelliFlo, Fairs, Durrell Software.
Transition to the new model
What measures are in place to ensure the platform helps advisers to move to a fee-based business model? Flexible remuneration options
Do you give advisers the option to take less initial commission and more annual trail or determine their own remuneration with clients? Yes
How and when is annual trail paid? Varies by product
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