Wrap Adviser

A wrap account (or wrap service) is in very simple terms a more effective and efficient way to consolidate and manage an investors investment portfolio and financial plans online. Often this is done for a fee, or a series of charges.

These charges cover all administrative and management costs. This type of service is what is also known as an investment platform or financial platform service.

Wrap services originated in Australia and New Zealand and then came to the UK in about 2000. The first provider in the wrap market place was Transact. They were then followed by several other providers - some of which have subsequently withdrawn from the market. At the time of writing (2018) approximately £30 billion of assets are held on the Transact wrap service in the UK.

The better Wrap services or accounts usually enable investors - usually with the advice of a financial adviser - to select from an extensive range of UK and offshore funds and assets - including unit trusts, OEICS, investment trusts, equities, cash, structured products, external fund managers and other investment products. The service can then be used to allocate these assets seamlessly to the most appropriate tax wrappers - including ISAs and pensions plans. Both investors and advisers can then view a holistic picture online of the complete Portfolio - all in one place, from anywhere in the world - 24/7.

The potential benefits to investors are:
They only have one counter-party to deal with. Saving a lot of time dealing with a diverse range of fund managers, financial institutions and other product providers Investors can view their entire Portfolio all in one place, enabling them to keep track of their current financial position on a daily basis, however complex their financial affairs are

They also receive a single consolidated annual tax statement, comprehensive six-monthly statements, documentation of all purchases, sales, deposits and withdrawals

The most professional Wrap services make no charge for re-registering assets in specie, on or off the platform.

Source: Wikipedia Dated 20th April 2011

The guidance and/or advice contained in this website is subject to UK regulatory regime and is therefore restricted to consumers based in the UK.