Skandia adds corporate super service
Australian Skandiawill launch a new corporate superannuation service targeting independent financial advisers through its bundled product Skandia One next month.
Skandia One Corporate Solutions is designed for funds under $20 million, an area which is typically advice-led and dominated by the independent financial adviser but which has been neglected by service providers in the past, according to Australian Skandia chief executive Ross Laidlaw.
“At that end of the market people have tended to look at the higher end and larger employer schemes, while the business model we present is very much independent financial adviser-centric,” Laidlaw says.
Leveraging the technology and interface already utilised by Skandia One, Corporate Solutions is a web-based product with all transactions conducted electronically to streamline the management of corporate superannuation.
Laidlaw says Skandia’s global standing provides it with the technical expertise and economies of scale to gain cost efficiencies while delivering a sophisticated product.
“Financial advisers now have the convenience of viewing any of our solutions alongside each other due to the efficient use of our technology,” Laidlaw says.
Full details of pricing and investment options will be revealed following the product’s official launch.
Australian Skandia has also introduced a new fee structure with Corporate Solutions, with the adviser fee included in the management fee.
“As advisers increase their level of corporate superannuation they will increase their level of ongoing trail, so it’s an incentive to independent financial advisers to increase their business in this area, and it’s not an additional cost to the client, but is effectively being paid from our margin in the product,” Laidlaw says.
Still in its first year of operation, Skandia One offers managed investments, personal superannuation, allocated pensions and now corporate superannuation, with $400 million in funds under management currently.
According to Laidlaw, Skandia One received record inflows of $60 million in May, and they are expecting another strong month for the platform in June.
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