MLC/NAB Wrap Platform - Cash hub question.

Discussion in 'Financial Planning' started by Frank Manno, 14th Jun, 2017.

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  1. Frank Manno

    Frank Manno Well-Known Member

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    26th Sep, 2016
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    Location:
    Sydney
    Hi everyone,

    My financial planner wants to use a wrap platform to invest my money. I understand that this platform has a cash hub and that this is used to transfer dividends to me.

    How much control does a financial planner have over where he can direct these funds? I don't mean to be paranoid but what stopping them from sending profits to some other account without my knowledge?

    I want to use this company/individual to make the investing decisions for me but I'm finding it difficult to accept if in fact they are directing which accounts money can go into.

    In the money is just bouncing around within sections of my OWN wrap platform then this is fine of course but I don't want them to be able to direct money to an outside account just like someone could do by logging into a regular bank savings account.



    -Frank
     
    Frank Manno, 14th Jun, 2017
    #1
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  2. Rakhi Withanage

    Rakhi Withanage Member

    Joined:
    30th Mar, 2017
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    15
    Location:
    Adelaide, SA
    Hi Frank,

    Your financial planner can only send funds to accounts that have been authorized by you as it is illegal to move funds in to any other accounts that weren’t authorized previously.

    You can also request a statement of transactions and view it online to put your mind at ease.
     
    Rakhi Withanage, 15th Jun, 2017
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  3. Simon Hampel

    Simon Hampel Founder Staff Member

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    3rd Jun, 2015
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    Location:
    Sydney
    How much are you investing Frank?

    If you have quite a bit (ie $50K-$100K or more), you may find it cheaper to look into wholesale fund platforms. These don't typically give you as much flexibility as a wrap platform would - but it will be a LOT cheaper.

    My experience with wrap platforms (admittedly which is probably 10 years out of date now) showed that they were very expensive and the prime benefits are typically for your adviser who gets a nice commission and for ease of reporting at tax time (consolidated reporting from the wrap provider).

    Would be interested to know what the management fee of the platform is and how much your adviser is getting (if anything).
     
    Simon Hampel, 26th Jun, 2017
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    4 people like this.
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