Goliaths grow UK master trust market
The arrival of global players in the UK master trust market has boosted awareness and brought benefits for Australian player Objectmastery.
The Australian company has been operating its own master trust, Transact, in the UK since March last year.
American financial services giant Fidelity launched its master trust in the UK last July, initially using the Internet. It has about £110 million under management.
Objectmastery group managing director Michael Howard, says Transact now has £50 million under management while Skandia, which launched a multi-range choice master trust in the UK in 1994 has £1.4 billion under management.
"Transact has been performing well because it understands the financial planning market better than its competitors," says Howard.
"But with players like Fidelity coming in, there is now a market for master trusts. We believe the more competition the better."
Howard says independent financial advisers are desperate for advice on products and for the bundling of product solutions that master trusts can provide.
"The difference between Transact and Fidelity is what advisers do when they compare the products," he says.
"When dealing with Transact, the advisers ask us how we can incorporate a particular product or asset, rather than asking us why we are better than our rivals."
Howard says there are now 150 advisers in the UK using Transact. That list is growing at about 15 a month.
But he admits the UK financial planning industry still has a lot to learn.
"The UK (financial planning) industry is about 10 years behind the Australian financial planning industry," Howard says.
"The UK has never had the rollover legislation Australia had back in 1983, which has led the mums and dads to drive the financial planning market."
Recommended for you
Financial Services Minister, Stephen Jones, has assured the cost and time to enter the financial advice profession will soon be halved, as shadow treasurer Angus Taylor pledges to reach 30,000 advisers.
The positive results of the latest financial adviser exam have helped the advice profession reach 15,600 yet again, according to Wealth Data analysis.
Financial advice firms have told Adviser Ratings they are planning to increase their compliance spend by almost a third, including on enhancements to their cyber security which ASIC has identified as an enforcement priority.
The digital advice platform is officially launching into the financial advice sector, offering up its services to practices as a means of engaging with the next generation of clients.
