Wrap Due diligence guide

Transcription

1 Wrap Due diligence guide For adviser use only.

2 Introduction As the Financial Conduct Authority (FCA) places more emphasis and focus on due diligence, documenting your decision on platform selection is becoming increasingly important. We are here to help you make an informed decision on what is right for your business. Based on our experience of working with over 1,463 advisers, this guide answers key questions you may have about platform selection. It also covers the nine areas which the FCA list as important considerations for this decision. To make an informed choice about which platform is right for you, you need to think about how the platform will support your existing client service and investment proposition. We can help you decide whether the Standard Life Wrap is a good fit for you, your business and your clients. i Find out more If your questions aren t answered in this document, please get in touch. We are happy to give you more details or answer any other questions you may have just contact your Account Manager or call us. 02/16 Wrap Due diligence guide

3 Contents Section 1 The platform provider 06 Section 2 Platform Terms and Conditions 08 Section 3 Charges 09 Section 4 Range of funds, tax wrappers and 10 other products available Section 5 Range of asset classes 10 Section 6 Functionality 11 Section 7 Accessibility 12 Section 8 Additional tools 13 Section 9 Support services 14 Page Information is correct as at December 2015 unless otherwise stated. Wrap Due diligence guide 03/16

4 Standard Life Wrap at a glance The provider Standard Life Savings Ltd Subsidiary of Standard Life plc which was founded in 1825 Platform launched in 2006 Standard Life plc is a FTSE * listed company, market cap 5.7 billion (February 2016) Standard Life plc has assets under management 328 billion Wrap platform assets under management 28 billion Standard Life plc is well financed and rated we have a AKG rating B+ (Platform), A1(Moody s rating) A+ (Standard &Poors rating) Winner of Platform of the Year and Best Platform Provider (AUM over 12.5 billion) 2014 and 2015, Best Platform for Adviser service and Best use of Platform Technology at the Aberdeen UK Platform Awards 2015 Terms and Conditions Adviser Terms and Conditions cover use of platform Client Terms and Conditions enable all products to be used if required, switches, sale, purchase of assets with no further signature Platform available to UK retail investors only Charges Simple and unbundled ISA/ Personal Portfolio 0.10% to 0.40% Bond/ SIPP wrappers 0.25% to 0.55% Client level volume terms available Family terms available Adviser discounts start at 20 million Unbundled share classes available where possible plus funds with additional discounts Range of funds/ tax wrappers Stocks and Shares ISA Cash ISA SIPP Onshore Bond International Portfolio Bond Personal Portfolio Interest paying cash account Over 2,750 funds Wide range of investments OEICs, ETFs, investment trusts, equities Access to Discretionary Investment Managers (DIMs) Access to a wide range of trusts * FTSE is a trade mark jointly owned by the London Stock Exchange Plc and The Financial Times Limited and is used by FTSE under licence. 04/16 Wrap Due diligence guide

5 Range of asset classes A wide range of asset classes including: Money market instruments Fixed interest Property UK equities European equities US equities Far East equities Specialist Functionality Re-registration both on and off platform Online audit trail Ability to record off platform assets Rebalancing, switching and bulk switching Model portfolios (pre-set and adviser built) Phased investment option Flexible withdrawals Pre-funded switches Client and adviser reporting Corporate actions managed Investment in DIM model portfolios on platform Can accept Direct Debit payments into Personal Portfolio for existing trust accounts Accessibility Available 24/7 other than regular maintenance Integration with a range of back office systems Access to third party DIMs Online new business and top-ups Straight through processing Client document library Online view access for clients Additional tools Risk profiling Asset allocation tools Portfolio and fund review tools Access to fund research and factsheets Income drawdown yield calculator Information available for CGT calculations Support services Online support via dedicated website Regional platform managers Platform account managers Local account managers Technical Solutions team for trusts, pensions and tax planning Investments specialists Telephone based adviser support team Wrap Due diligence guide 05/16

6 1. The platform provider 1.1 Who is the platform provider? Standard Life Wrap is provided by Standard Life Savings Ltd which is a wholly owned subsidiary of Standard Life Assurance Ltd. Standard Life has been a leading provider of financial services since 1825 and is a FTSE listed company with a market capitalisation of 5.7bn (June 2016). With such a strong financial base, we are well placed to continue to invest in a leading innovative platform. In the last 2 years, Standard Life has invested a significant amount in the platform to support regulatory, legislative and propositional developments. To demonstrate our ongoing commitment to supporting a vibrant adviser market in the UK Standard Life has announced Accelerate, a 30m investment in platform developments for The programme will deliver a range of enhancements and support to ensure Standard Life Wrap is optimised for Pensions Freedom. Does the platform have market longevity? Our platform was launched in 2006 and has grown every year, attracting new adviser firms, clients and assets. 1,463 adviser firms are now using the platform and our platform assets under management total over 28 billion. In addition, Standard Life Wrap was the top platform in the UK for retail advised gross and net sales in H (Fundscape). As a result of this, and as a profitable parent company, we are able to continually invest in the platform business, demonstrating our commitment and on-going sustainability. We are dedicated to developing our platform and building on our market-leading position. You can see how we have grown in the diagram below, reflecting on the operational performance of our platforms. FY 2009 FY bn total AUA 25.5bn total AUA Client-by-client transactions online 2.3 million investor deals We deliver scale and efficiency Bulk processes switching, re balancing and reporting 21 million investor deals More than 95% error free Error free dealing 06/16 Wrap Due diligence guide

7 1.2 Is Standard Life Group currently making a profit? Yes, our full year 2015 results show that our operating profit before tax was up to 665m. Profit for new style fee business in the UK, much of which originates on Wrap, was an important contribution to this. 1.3 What is your service reputation? Standard Life has a reputation for providing excellent service and this also applies to our Wrap platform. Our face-to face support consists of regional platform managers, dedicated platform consultants and account managers. They will help you, your clients and your business get the most from our Wrap. In addition, we have platform experts available within our customer service teams as well as a dedicated telephone adviser support team. Standard Life s reputation for delivering excellent service is demonstrated through the range of awards we have won, including Platform of the Year, Best Platform for Adviser service award 2015 and Best platform provider (AUM over 12.5 billion) at the 2014 and 2015 Aberdeen UK Platform Awards. Our platform support team was also given a Gold service rating by Defaqto for Standard Life Wrap was the only scale player to achieve both this and their widely acknowledged 5 star features rating. We believe our commitment to service is what sets us apart from our competitors. 1.4 What ratings do you currently have? Standard Life Assurance Ltd has the following credit ratings: Agency Rating Outlook Moody s A1 Stable Standard & Poors A+ Stable AKG (SL Group) A n/a AKG (SL Platform only) B+ n/a At December Who supplies the platform technology? Our platform technology is owned by the FNZ group but Standard Life has intellectual property rights on platform developments specifically in place for Standard Life s customers. This partnership enables Standard Life to leverage FNZ s technological expertise whilst focusing on building propositions that suit both client and adviser needs. Standard Life has complete control over the prioritisation of developments which are based on adviser and client demand and working with a technology partner who also supplies services to other providers means that there is added value in relation to market intelligence and platform insight. 1.6 Are you subject to regulatory assessments? Standard Life Group has a close and co-operative working relationships with its regulators. As a part of that relationship we participate in a rolling programme of supervision work and in addition to involvement in thematic reviews by the Financial Conduct Authority. 1.7 What is your approach to the PS13/1 regulations? Standard Life s programme of changes resulted in the early implementation of the FCA s policy on platform service providers in The platform is 2016 ready. Wrap Due diligence guide 07/16

8 2. Terms and Conditions 2.1 Who signs Terms and Conditions? Terms and conditions are signed by both you and your client. For more information, please visit our Wrap pages under the Propositions tab at Who is eligible for a Wrap account? Your client must be a UK resident and 18 years or older. 2.3 What Financial Services Compensation Scheme (FSCS) protection does my client have? Your client has the maximum possible FSCS protection available depending on the type of assets held. We hold client money and client assets separate from Standard Life s own assets in accordance with the FCA s client money rules. The FSCS provides protection to consumers. However, different limits apply to different types of investments. For further information, please check the FSCS website or call Offshore deposit accounts are not protected by the FSCS, as firms holding the account are not normally UK-based and not authorised by the FCA. However, there may be protection in the individual jurisdictions where the accounts are based. 2.4 Do you have a best execution policy? Yes, its available in our Wrap Platform - Order Exectution Policy. 2.5 Describe your business continuity and disaster recovery plans Standard Life, including Standard Life Savings Ltd, has tried and tested business continuity and disaster recomvery plans, which are validated and regularly audited. Standard Life regularly reviews and tests its plans and capabilities. We take into account critical processes and a range of incident scenarios, which could result in disruption to our business operations and customer services. We also carry out regular benchmarked incident simulation exercises and our current capability rating is Excellent, according to an external crisis management expert. In addition, we have full data back-up and recovery processes in place. As well as the primary data centre, we also have a Service Continuity Centre (SCC) a fully functioning data centre with sufficient systems and processing capability to support all business critical services. Our critical services can ordinarily be restored and active at the SCC within 24 hours. 2.6 Do my clients require a minimum holding in a Wrap account before they can make an investment? No, there s no requirement for a minimum holding in a Wrap account, however your client requires sufficient cash to make an initial investment. 2.7 Describe your complaints procedure Standard Life has a tried and tested complaints process, which is fully compliant with all FCA and the Financial Ombudsman Service (FOS) guidelines. You, or your client, can submit complaints in writing by or by calling us. 2.8 How do you ensure data and system security? We take data and system security very seriously and we comply with legislation at all times. We apply the appropriate safeguards to any personal data we collect, record or use to make sure that we comply with the Data Protection Act More information is available on request. 08/16 Wrap Due diligence guide

9 3. Charges 3.1 How does the charging structure operate? The Standard Life Wrap has a competitive charging structure that is designed to be simple and completely unbundled. We apply a monthly platform charge based on the platform eligible assets in your client s wrap account. We also apply a monthly product administration charge based on the value of insured funds, mutual funds, investments held within a managed portfolio and the relevant cash account for SIPP, International Portfolio Bond and Onshore Bond. The platform charge for the ISA, Personal Portfolio (PP) and for the Wrap cash account ranges from 0.10% to 0.40%. The combined platform charge and product administration charge for our SIPP, Onshore Bond and International Portfolio Bond ranges from 0.25% to 0.55%. Once platform assets reach a certain level, we begin to apply discounts. We offer terms to family groups and to clients whose advisers show a commitment to the Standard Life platform. For details of our charging structure and for more information about discounts, please refer to our Wrap charges guide at How can I take my charge? We understand that in a post RDR world, it s important to you that charging is as flexible as possible. With the Standard Life Wrap, you can select initial and on-going adviser charges either at overall Wrap account level or at tax-wrapper level. Our platform also allows an ad hoc adviser charge to be collected from your client to cover a specific service that you ve delivered. Charges are typically taken from the Wrap cash account, or, in the case of SIPP at wrap product level (this may be more tax efficient in some circumstances). 3.3 What levels of charge can I take? There are no limits to the level of adviser charge you can collect, as long as you agree these with your client. 3.4 What happens if there is insufficient cash available to pay charges? Should this happen, the platform may notify you. The platform may move money between cash accounts or sell investments to cover the charges. The diagram below shows this in order: Adviser charges Personal Portfolio (PP) Cash Wrap Cash If insufficient funds, we auto-disinvest in the following order: PP Mutual Funds Proportionate across all funds Stocks & Shares ISA Cash S&S ISA Mutual Funds Proportionate across all funds When disinvesting from Mutual Funds, then 100 plus charge amount normally disinvested to minimise no. of Mutual Funds small trades 3.5 Are there any initial charges in respect of funds? Other than a small number of funds, there are no initial charges or switching charges. Wrap Due diligence guide 09/16

10 4. Range of funds, tax wrappers and other products 4.1 How many funds are available on the platform? There are around 2,790 funds available on the platform. 4.2 How many fund managers are available on the platform? There are 157 fund managers on the platform. 4.3 Are the funds available as unbundled share classes? Yes, we are working with asset managers to facilitate access to unbundled share classes 99% of funds are available on this basis (June 2016). In addition, Standard Life recently announced completion of negotiations with leading fund management groups to offer access to more than 380 discounted clean funds. The average discounted clean fund OCF is 79bps, with an average OCF saving compared to clean of 9bps Discounted clean terms are available for mutual funds that comprise a total of 6.5bn (June 2016) of platform assets. 4.4 Which tax wrappers are available on the platform? The platform gives you access to our SIPP, Onshore Bond, International Portfolio Bond, ISA (both Stocks & Shares and Cash) and a PP for unwrapped investments, e.g. Unit Trusts, Stocks and Shares, OEICs. All our tax wrappers are administered by Standard Life Savings Ltd, Standard Life Assurance Ltd or Standard Life International Ltd (International Portfolio Bond). 4.5 Is there a cash account available? Yes, charges can be paid from the Wrap cash account, or, in the case of SIPP, from the Wrap SIPP cash account. Interest may be paid in respect of balances in the Wrap cash account. Money held in these cash accounts is currently deposited with a range of specially selected banks. 4.6 Do you offer a range of funds suitable for clients in drawdown? Yes, our Discretionary Plus proposition offers a carefully selected range of model portfolios from eight DIMs, created specifically to support advisers facing the challenge of the changing retirement market and having to manage the portfolios of large numbers of clients requiring regular income withdrawals. 5. Range of asset classes 5.1 What asset classes are available? We apply a two-tier approach with a total of 23 asset classes. Tier one covers Money Market Instruments (including cash), Bonds, Property, UK Equities, Overseas Equities, Multi Asset and Specialist fund groups. The second tier provides a little more detail around the fund groups for example, Bonds are divided into UK Government Bonds, UK Corporate Bonds, UK Mixed Bonds, UK Long Bonds, High Yield Bonds and Global Bonds. 5.2 Do you offer risk-rated funds? My Folio Funds are a family of carefully constructed risk-based portfolios, managed by Standard Life Investments. They offer your clients a choice of investment styles across five risk levels. 5.3 Do you offer investments such as Exchange Traded Funds (ETFs), investment trusts, equities? Yes, these are available through our online stockbroking function, provided by HSBC Bank plc. 10/16 Wrap Due diligence guide

11 5.4 Do you offer structured products? Yes, structured products are available as an off-platform investment for SIPP. Structured deposits are also available on SIPP and International Bond. 6. Functionality 6.1 Do you support re-registration? Yes, where possible, we support the re-registration of assets both on and off the platform. We also facilitate electronic re-registration for mutual fund investments in our PP and Stocks & Shares ISA products, when an external provider/platform can support this. 6.2 Does the platform support model portfolio functionality? Yes, the platform helps you create and manage model portfolios. These can be set up on risk ratings and by tax wrapper. You can also select asset classes and weightings or populate your model portfolio with individual funds or equities. You can also access a number of pre-set model portfolios from a range of providers. 6.3 Is bulk switching and rebalancing available? Yes, our bulk-switching tool allows you to simultaneously switch multiple clients from a single fund to one or more funds (up to a maximum of 25). You can also redirect regular payments to the new fund selection. 6.4 Can switches be pre-funded? Yes, all fund switches are pre-funded. 6.5 Is there a regular investment facility? Yes, a regular investment facility is available on the platform. 6.6 What reporting is available? A full suite of reports is available to you and your clients. You can produce client reports at portfolio or individual product level. The report can include valuations, asset allocation, fund holdings, performance data and transactions. You can also access a wide range of management information that covers your total holding on the platform. You can split this information by client or fund asset classes and you can also access information about cash balances and remuneration. The reports are created in Excel, so you can, if you want, analyse the data in more detail. 6.7 Can non-platform assets be recorded? Yes, the platform allows you to record static valuations for example property valuations and art collections. You can also record valuations for off-platform assets by using the valuation service we offer in conjunction with Financial Express. 6.8 Does the platform provide an audit trail? Yes, the platform can show an activity audit trail. You can view a history of viewed screens, pre and post-sale validations, a list of transactions, re-registrations and transfers, new business applications and any issues raised. In addition you can filter information by customer, product, fund or provider. 6.9 Can my clients details be changed online? Yes, you can update your clients details online. However, details such as date of birth and bank details will have to be changed by our client servicing teams. Wrap Due diligence guide 11/16

12 7. Accessibility 7.1 What is the availability of the platform? The platform is generally available online 24 hours a day, every day other than our standard maintenance times which run from 23.00hrs on a Saturday night to 07.00hrs on a Sunday morning. 7.2 Which back office providers does the platform integrate with? We are committed to helping advisers transform and integrate their business. Currently, users of the major adviser software firms, e.g. Iress, Intelliflo, Plum, Capita, are able to receive valuations and adviser remuneration information from us. We will also be rolling out our recently developed Wrap new business two-way integration service with the main adviser software providers in early 2016 as part of our Accelerate Programme. 7.3 Can I nominate a third-party Discretionary Investment Manager to manage my clients investments? Yes, you can appoint an authorised DIM firm off platform to manage assets within the SIPP and International Portfolio Bond. With the launch of our DIM Hub, managed portfolios from a panel of discretionary investment managers, including Standard Life Wealth, are available on platform for SIPP, International Portfolio Bond, ISA and Personal Portfolio. 7.4 Do you require evidence of authority every time a client s funds are switched on the platform? No, once the Client Terms and Conditions have been signed, you are able to switch funds without evidence of authority. However, you may still require authority depending on your permissions relating to managing investments. 7.5 Which processes can be transacted online? In addition to switching and rebalancing funds, you can increase or decrease payments, move money between tax wrappers and invest in new tax wrappers. 7.6 Can my client view their investments and make transactions online? Your client can view their investment online but they can t make transactions. 7.7 Does the platform use straight through processing? Yes, our platform benefits from straight through processing for a number of tasks saving you time and resource. These processes include: Purchase and sale of assets Switching and rebalancing funds (including bulk rebalancing) Real time dealing Cash withdrawals 7.8 Can I access my clients documents on the platform? Yes, the platform maintains a document library for each individual client. The library keeps all the documentation generated from the platform, including valuations, review reports and fund fact sheets. In addition, you can scan documents, add them to the library and maintain a complete file online. 7.9 What direct contact do my clients receive from Standard Life and when? We only contact your clients directly when there are regulatory or legal reasons to do so. This includes correspondence such as: Half yearly statements Tax certificates ISA declaration Contract notes (although the option to opt out of these and store online is available) Changes to the Client Terms and Conditions 12/16 Wrap Due diligence guide

13 8. Additional Tools 8.1 What financial planning tools are available on the platform? We offer a full range of planning tools on the platform. These tools can help support your end to end advice and investment process, from risk profiling to asset allocation and investment selection. All tools are available at no additional charge. Tool Online fact-find Risk profiling Investment selection Research Rebalancing Bulk switching Income drawdown calculator Alerts Portfolio Analyser Tool Description A client s financial data can be held online. These can include financial goals, income, expenditure and current assets. Developed in conjunction with Oxford Risk Research and Analysis (ORRA), the tool helps you assess a client s attitude to risk and their capacity for loss. You can use this tool to research funds and get links to external fund managers websites and fund fact sheets. It also helps you build trial model portfolios. The research tool gives you access to a database of information on a range of investment types such as mutual funds, equities, investment trusts and ETFs. Newsfeeds, trading information and fund factsheets are also available. The rebalancing tool helps you review your portfolios regularly and simplifies what can be a complex and labour intensive process. Rebalancing can be made on a single or bulk basis. Our bulk-switching tool helps you switch multiple clients from a single fund to one or more funds (up to a maximum of 25). The income drawdown calculator illustrates the maximum Capped drawdown income a client would be able to take if their maximum income was calculated today. You can use alerts to notify you of significant events if, for example, a payment fails because your client has insufficient cash. Allows advisers to track past fund performances. It allows advisers to create individual or composite benchmarks or select a benchmark from a range of predefined benchmarks; this includes OBSR model portfolios. This integrated tool also creates detailed reports for both the adviser and the client in a PDF format. Finally, it also provides exclusive access to the Myfolio look-through tool. 8.2 To what extent can the platform be white labelled? The platform can be white labelled so that your client reports and platform screens appear with your firm s corporate colours and logo. In addition, you can adapt the platform to meet your own requirements. You can, for example, add enter/check stages for certain processes, set access levels within your firm, add pre-set adviser charging options and adviser specific model portfolios. Wrap Due diligence guide 13/16

14 9. Support Services 9.1 What support can I expect to receive? We are committed to delivering a comprehensive service to you and you will have access to a number of support services through Standard Life. These include online help, a dedicated website containing training guides, product information, fund and regulatory information, face-to-face help and a dedicated telephone support team. 9.2 What training and support can I expect? We allocate each firm its own dedicated platform consultant. The consultant is responsible for delivering a structured Wrap training and implementation programme, designed specifically for your business. In addition, our regional platform managers are here to help you maximise the benefits on offer with our platform. They ll help you develop your client segmentation and client value propositions as well as plan your asset migration strategies. We will still align local account managers to each firm and they re responsible for the day-to-day relationship between you and Standard Life. 9.3 How will Standard Life deal with my enquiries? Our customer centre will deal with your telephone and mail enquiries. We also have a dedicated adviser support team to help you with platform related questions. 9.4 Is trust and tax planning support available? Yes, there are specialist teams available throughout the company covering estate planning, tax, legal and compliance assistance and regulatory information and in particular, the Technical Consultancy team can provide specific support in relation to tax planning. 14/16 Wrap Due diligence guide

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16 Pensions Savings Investments Insurance Find out more Call us on We re open Monday to Friday, 9am to 5pm. Calls may be monitored/and or recorded to protect both you and us and help with our training. Call charges will vary. or contact your Standard Life Account Manager Standard Life Savings Limited, registered in Scotland (SC180203) is the provider of the Wrap Platform, Wrap Personal Portfolio and Wrap ISA. Standard Life Assurance Limited, registered in Scotland (SC286833) is the provider of the Onshore Bond for Wrap and the Standard Life Self Invested Personal Pension Scheme. Standard Life Trustee Company Limited, registered in Scotland (SC076046) is trustee of the Standard Life Self Invested Personal Pension Scheme. The registered office of each company is at Standard Life House, 30 Lothian Road, Edinburgh EH1 2DH. Standard Life Savings Limited is authorised and regulated by the Financial Conduct Authority. Standard Life Assurance Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Standard Life International dac, registered in Dublin, Ireland (408507), is the provider of the Wrap International Portfolio Bond. It is a designated activity company limited by shares with its registered office at 90 St Stephen s Green, Dublin 2. Standard Life International dac is authorised and regulated by the Central Bank of Ireland and subject to limited authorisation and regulation by the Financial Conduct Authority. Details about the extent of Standard Life International dac s regulation by the Financial Conduct Authority are available from us on request. WRAP Standard Life