Fincast eyes majors in portfolio app launch

10-Dec-2015

By Sarah Kendell

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Inaugural Stone & Chalk member firm Fincast has launched its first application, which will allow advisers to manage their own bespoke portfolios for clients, and will announce its first partnerships with major wealth management firms in the first quarter of 2016.

In an interview with financialobserver, Fincast managing director Andrew Connors said the new application would allow aligned advisers the freedom to tailor investment solutions more closely to client needs, while also ensuring regulatory compliance.

“Major wealth groups have had this real tension in that they want their advisers to use their in-house portfolios that their research groups monitor and manage, but the advisers would prefer to use a tailored solution for their clients that’s not off the shelf,” Connors said.

“This application will give those groups a deployable framework that allows advisers to put their own spin on their particular approach, but imposes a tight regulatory framework that is going to ensure they’re producing portfolios which are appropriate for the circumstances.”’

He said the ability to move away from product sell and towards strategic portfolio construction advice would allow advisers to add more value to the client experience and build a more sustainable business proposition.

“Client engagement in the industry hasn’t been where it could be over the past few years and I think a big part of it is to do with moving away from the traditional product sell that a lot of advisers got caught up with in the pre-FOFA (Future of Financial Advice) world,” he said.

“If advisers can move around product selling to more strategic asset allocation, and bring some of the investment capabilities they may have outsourced in the past in-house, that’s going to be a value-add.”

He mentioned the firm was currently in discussions with several adviser groups and would be in a position to announce partnerships early in the new year, as well as launching its second and third applications.

The second application would be a robo-advice solution designed for younger, lower-balance clients, while the third would be a modelling tool advisers could use in front of clients during consultations.

“The robo-advice piece is an opportunity for advisers to drive efficiencies in their business, which is going to help them expand the number of people that receive advice,” Connors said.

“The other application is something that advisers can use across the table with clients to have an engaging discussion around why a particular recommendation is being made.”

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