One of the key tenets of any financial planning business is how to deliver the best and most cost-effective advice service to its clients, which is why it's crucial to be aware of new models aimed at assisting advisers in doing just that.
You may be aware that OneVue recently partnered with Melbourne advice group Nextplan and Mercer to create a new low-cost private label, Nextplan Wealth Management. The private label offers a comprehensive super wrap, suite of risk-based pooled investments and an investor-directed portfolio service with custom-built managed accounts.
The crucial point of difference here is that, in addition to OneVue's long-term opposition to platform shelf-space fees, Nextplan Wealth Management offers its suite of managed accounts and funds through FUND.eXchange, which is administered by OneVue Fund Services on a fee-for-service basis.
As OneVue's EGM platform services, Lisa McCallum, explained when the partnership was announced: “The breadth of OneVue’s platform functionality and investment choice enables growing financial services groups to deliver a sophisticated solution and scale their business at lower cost."
"As evidenced by our calls for fee transparency and our opposition to shelf space fees," she added, "this strategic alliance is further reflection of OneVue’s commitment to reducing the overall cost to the client.”
As discussed not too long ago in our analysis of ASIC's RG97 review, there are a wide range of industry perspectives on investment platforms – how they should operate, whether their structure is clear enough for clients to understand and the best way they can assist advisers and clients in managing their wealth.
Part of the reason for the range of viewpoints is the traditional complexity of the platform sector, given that there are effectively two layers of costs involved: those charged by the platform itself and those by the underlying investments accessed through the platform.
As we're moving into a climate where demands for transparency and clarity are arguably at an all-time high, it's important to consider how driving down the cost of investing can have a tangible effect on reaching clients' long-term wealth goals.
Disclaimer: OneVue is the parent company of No More Practice Education.
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