Cofunds promises ‘wrap’ functionality

Cofunds CEO Brett Williams says the platform is evolving to offer all the features of a ‘wrap’, despite the fact many advisers are happy with a simpler model.

In an interview with our sister title Professional Adviser, he says it is key to offer advisers a choice of facilities, like unbundled pricing alongside bundled options, to ensure the platform meets the needs of all areas of the financial planning community.

Williams says: "Cofunds is on a journey and the labels attached to our business are sometimes not terribly helpful. We have £23bn of assets compared to some of the smaller ‘wrap' businesses with £1bn or less.

"What this suggests is most people don't want the full functionality of a wrap. They want something more straightforward which is historically what a supermarket has done and I expect that will continue.

"Most people won't require the full functionality of a wrap but we want to deal with the full financial planning community as a whole."

The original aim was to introduce the unbundled option towards the end of this year and beginning of 2011 but this timetable has been put back as Cofunds is still waiting for FSA guidance on the issue. This could come in the platform part of the RDR paper due to be released at the end of March.

Williams says: "Unbundled pricing is an important option but it is not realistic to think everyone wants it. If it was that important, it is available now so why are assets coming onto Cofunds which doesn't offer it yet?

"Transparency of charges is very important to help clients and advisers make decisions. We will not try to be the cheapest but we will try and add value."

From talking to advisers, Williams believes two to three platforms is a norm for advisers with many veering towards the former. However, a growing number are deciding to use one platform as a core offering, providing it passes their suitability test, with another as a satellite to suit certain types of clients.