Towergate launches two platform strategy as it segments clients

Towergate Financial has announced plans for a two platform strategy and the use of a white-labelled version of the Ascentric wrap to launch of its own wealth platform. 

The national firm will use the Ascentric-powered wrap for its high-net worth clients and a white labelled version of Cofunds for mass affluent investors.

The company rebranded its businesses under the Towergate Financial name earlier this month and will now roll out an adviser tool kit, which includes the wrap, a risk profiling tool and investment solutions selected by the group’s investment committee for its 90 advisers.

‘We have a two platform strategy going forward; clients with less complex needs will have a Cofunds white label and the Towergate Financial Wealth platform for mid to high-net worth client base,’ said Dan Saulter, business development director of Towergate Financial.

‘This [the Ascentric powered wrap] is hugely important part of our toolkit it will allow us to be more innovative across our financial planning clients and general insurance customer base.’ 

The Towergate Financial Wealth platform will have a different charging structure and smaller range of tax wrappers than the standard Ascentric platform. Towergate Financial was also moving clients from its 11 acquisition onto a single back office system, said Saulter.   

‘Ascentric and Investment Funds Direct Limited [the white labelled wrap] share the exact same technology but what we have done is develop a special version of the platform to meet our partners needs,’ said Hugo Thorman, chief executive of Ascentric. 

Thorman said Ascentric could develop a white-labelled wrap for adviser firms with more than £500 million of assets under management. Ascentric signed a white label deal with Chartwell Group for a direct to consumer platform in April. 

‘New model advisers were the first to move because they are small firms but we will see more and more firms adopting wrap because they know they have to do something,’ said Thorman.  

Royal London-owned Ascentric has also added an open architecture, onshore bond from HSBC to the tax wrapper on its platform. The HSBC investment bond has no initial charge and a 0.5% annual management charge plus the normal platform charges.