FinClear develops SMA offering for Aussie market

The FinClear solution, initially rolling out with InvestSMART as ‘Professionally Managed Accounts’, aims to bring cheaper, more efficient managed account investing to Australians.

CEO David Ferrall said the new alternative to the traditional custody model ushered in a new era of cheaper, more efficient and more transparent investing.

“Custody models are expensive and quite clunky in terms of admin, and they don't offer real-time transparency,” he said. “A HIN-enabled model is much more efficient and a lot cheaper, meaning advisers can offer their clients the same managed account investment experience for much less. Many retail clients don’t understand the custody arrangement and are more comfortable having shares and ETFs held in their own name.”

Distributed by FinEx Wealth, it adds to FinClear’s managed account suite, which already encompasses zero brokerage MDA and IMA services. FinEx director Steve McLean said the demand for HIN-enabled solutions is extremely strong.

“In the current climate, anything that can lower costs and provide more transparency is going to be in demand,” he said. “We’re in a unique position to be able to create a managed account suite such as this because we own the full production chain, from client onboarding to trade execution through to settlement and reporting. Wealth management in this country is ripe for improvements from a technology perspective, and I’m very excited about the benefits FinClear can bring to the table.”

Adrian Flores

Adrian Flores is a deputy editor at Momentum Media, focusing mainly on banking, wealth management and financial services. He has also written for Public Accountant, Accountants Daily and The CEO Magazine.

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