threesixty Offer Wrap Bonus
threesixty is seeking strategic partnerships with a select number of Wrap platform providers it believes have a long-term future in the IFA marketplace and who will facilitate annual bonuses to be paid to its clients.
threesixty believes that while there are more than 20 Wrap platforms currently available or under development, the market will consolidate rapidly because of the high level of resources and commitment to the IFA sector that is required to provide a sustainable offering.
Over the next few weeks, threesixty will announce which providers will become threesixty Affiliated Platforms.
As conditions of affiliation, Wrap partners will have to offer threesixty clients:
- Priority support in the initial setting-up and configuration of platforms, hands-on assistance in migrating assets onto platforms and branded versions of platforms for client access
- Integration of threesixty’s compliance process wherever possible onto platforms to reduce risk, including pre-populated threesixty suitability reports; compliance checks to ensure relevant information has been obtained; and compliance audit trails for file review
- Provision of a facility for threesixty to receive a payment from each of the affiliated platforms, based on the assets under management placed by threesixty clients on the platform. threesixty will then use this to pay an annual bonus to IFA clients of 3 basis points on the assets they have placed on the platforms throughout the year
Phil Young, Partner, threesixty services, commented: “threesixty’s strategy has always been to inform and advise, working in close consultation with our clients. Last year we provided threesixty clients with a Guide to Wrap and a Wrap Suitability Report template. Factsheets on each of the major platforms are also available from our website.
“We have progressed negotiations with the major platform providers to a point where a number have agreed to add extra functionality exclusively for threesixty clients, and provide additional revenue which threesixty will use to fund an annual bonus to threesixty clients.
“We felt that the payment of a simple, annual bonus was the simplest and fairest way of rewarding our clients because it gives them complete control over how the money is used.”