Wrap Implementation: An Overview

Considering that online adoption / Wrap Implementation is a relatively new entity, where does the Implementation team sit?

Is it operations, sales or a stand alone function?

How do these roles typically work?

IFA Networks / Product providers (who have a Wrap offering):(whether it’s their own built platform or white labelled through an independent)

Platform Providers historically have a separate specialist function, with specialist peer groups for Group Pensions, protection and individual pensions, all reporting into a Head of Specialist Sales.

These individuals are typically referred to as Platform Consultants.

IFA Networks, work collaboratively with their chosen white labelled platform. The platform provider will offer onsite assistance with their partnered IFA firms. Once the IFA Network experiences strong net inflow of assets there would be a strong business case to recruit their own specialist Implementation team.

Platform consultants are targeted on traction. Meaning that after the Business Development Manager has won engagement of a particular IFA firm, the Platform consultants are targeted on the amount of advisers who position funds on platform. They have less strategic input and would normally be more sales focused than operational.

Historically, their bonus will be paid on Individual KPIs (signing up XYZ amount of Advisors per firm) with a corporate led bonus.

Independent platforms / (fully) functional Wraps:

Field based Implementation consultants have a greater operational control. These individuals (similar to the platform consultants with product providers) will come in after the Business Development Managers have won the initial business. Where it differs is that there will be more emphasis on functionality and operations, hence greater understanding of the integration dynamics and being the main bridge between relationship management (with IFAs) and the ‘what can actually be delivered message’ via operational teams.

Independent Implementation consultants are better placed to manage client expectations with regard to the Business Development Managers over-promising on delivery in order to win the business.

The independents do have field-based Implementation, but the majority is run via the telephone in tandem with the Business development Managers in the field.

Summary

Firstperson’s findings are that online adoption / Wrap Implementation and RDR consultancy work is already, and will continue to be, increasing in demand. Product Providers are continually looking to become more profitable, and due to Asset Management firms and Banks looking to offer wider investment solutions to the intermediary sector, they need to become ‘Service Providers’ rather than Product Providers.

Product Providers are continuing to look at how they can partner with IFA and Network firms to come in line with the RDR distribution demands.

Whether it’s a Product Provider, Network, Asset Management firm, or a bank, the market demands a higher level of skills from its permanent members of staff. It requires individuals to have a wider understanding of the breadth of Industry functions and how they interact with one another. This is presenting gaps in the market and skill shortages. The online adoption / Wrap Implementation role is the broker consultant of the future for the firms who wish to become RDR compliant and create a sustainable proposition for market.

Product Providers will need a combination of experienced external hires and be open to individuals who have Wrap expertise but in a more sales focused roles currently. There are more sales individuals than online adoption / Wrap Implementation professionals in the market place. Being open to these backgrounds will create a wider pool to search from and create better results. If this route is to be considered, it is essential that the package would be weighted to a higher basic salary with less bonus potential. This will facilitate a more successful transition for sales professionals into a role that requires more emphasis on knowledge rather than sales skills. It would also support the demand for better service and lower emphasis on product selling. Finally, internal promotion of potential talent would be crucial. The experienced hires will be a critical part of creating and managing a ast track programme for suitable individuals.

Firstperson believes that Product Providers who are currently looking at Wrap Implementation and Sales campaigns need to consider the way they go about their search. This exercise would compliment a more detailed, collaborative and partnered approach with senior stakeholders, actual decision makers and a specialist recruitment firm.

The chosen recruitment firm needs to be knowledgeable and more focused on recognising individuals who can demonstrate dynamism, adaptability and a more holistic understanding of financial services distribution and its challenges it faces in the run up to the RDR. This is where Firstperson can add value.

Simon Evans, Lead Consultant
Simon.evans@firstperson-executive.com
0117 914 2314