A wrap service is an administration system on which any permitted investment product can be placed and administered. Where historically an investor may have had multiple pensions, PEPs, ISAs and bonds with various different companies, these can now share one administration system. This simplifies administration for both client and adviser. The wrap is low cost, transparent and can be viewed securely on line.

 

Wrap has been available in the UK for several years and is quickly moving from a niche market into the mainstream as has happened in other countries.

Benefits at a glance

 

Clients with a varied or extensive portfolio accessing wrap will benefit from:

This ensures that clients always have a complete view of all their holdings at all times.

Investment Freedom

Unlike some other administration services that restrict investment choice, it is central to the Nucleus wrap proposition that there is freedom to select the assets most appropriate to client needs. Provided the asset can be legally held within the respective account and there are no concerns regarding the management of the asset, the "wrap" has the freedom to access it.

 

Holding assets in a nominee name provides the necessary authority to deal on behalf of clients and hold assets in an aggregated position. Nucleus is able to secure discounts to normal initial and annual management charges for unit trusts and other collective funds because it delivers economies from buying and selling funds in significant volume. In turn, this facilitates the consolidated reporting that is fundamental to the attraction of the wrap.

 

In many instances, the net result is that clients pay the same or lower level of charge, which is expressed in an open and transparent way. Clients always know the cost of the assets in their account.

The Technology

Administration of client assets is undertaken online through Nucleus' wrap platform, built around a robust tried and tested software system used by more than 90 companies all over the world. Investors can have confidence that its design ensures the smooth running, control and reporting of their investments.

Security of your Money

Both Nucleus Financial Services Limited and Scottish Friendly Assurance, their administration partner, are regulated by the Financial Services Authority and, as such, are responsible for ensuring that clients' money is properly audited and reconciled on a regular basis. The ISA, PEP and pension tax wrappers are provided by companies within the Scottish Friendly Group and, although each wrapper provider is not directly regulated with the FSA, the same high standards are applied to the conduct and management of client money as required by the regulator.

 

To provide additional security, assets held in a nominee name on clients' behalf are also monitored through a 'custody' service provided by independent third parties. A custodian provides an additional source of reconciliation, but most importantly, holds any certificates associated with the assets. Although most collective funds such as unit trusts or OEICs no longer provide physical certificates on purchase, Nucleus has ensured that Pershing Securities Limited, a subsidiary of the Bank of New York, will hold and audit those assets that do.

Cost of the Service

The cost has three components, each of which is shown explicitly, so clients always know exactly how much they are paying:

We firmly believe that transparency of cost is important in our client relationships.