With the recent collapse of well-known stockbroking firms, such as MF Global, Pritchard Stockbrokers and Worldspreads, investors may soon have access to protection in addition to the standard Financial Services Compensation Scheme (FSCS) limit, writes Joe McGrath
Several City-based insurance brokerages are seeking to offer additional protection to stockbrokers and wealth firms that offer trading services online.
Should brokerages opt for these services, it could mean that high-net-worth individuals seeking to execute large trades online will have additional peace of mind for amounts greater that the current £50,000 FSCS limit if their stockbroker buys these policies.
Investment management groups are increasingly offering software management programmes to allow high-net-worth individuals the opportunity to monitor the performance of their portfolio.
The most recent was from Legal & General Investment Management (LGIM), which is offering enhanced online analytical tools to monitor pension strategies.
Mark Wybrow, head of UK core client team at LGIM, says the design, adoption and execution of increasingly bespoke strategies demanded by clients requires improved risk analysis.
New tools give the ability to assess investment options and monitor the effectiveness of chosen strategies on a regular basis, he says.
With risk classification arguably more important than ever, wealth management firms are now employing sophisticated software to make a better assessment of investors’ risk requirements.
While a whole host of firms have employed such technology, one of the enhancements has come at AXA-owned brand Architas. The firm says this new technology will assist wealth advisers to match client investment risk to the right funds.
Cedric Bucher, Architas’ head of business development, says: “This new service fits with our overall strategy to deliver RDR-ready [retail distribution review] solutions and facilitate a comprehensive investment advice process.”