Praemium signs up Tasmanian firm MyState Financial as the first white label client for Powerwrap platform.
Praemium has entered into an agreement with MyState Financial and Powerwrap to launch a badged version of the Powerwrap investment wrap platform.
As part of the agreement, Praemium will commit to distributing MyState cash, term deposit and managed fund products on the Praemium SMARTwrap platform.
MyState is the first to sign-up under Praemium and Powerwrap's white label service and Praemium managing director Arthur Naoumidis said it sent an important signal to the market.
"Where this is really important is that this is a solid reputable company," Naoumidis said.
"It gives the other people - clearly we are negotiating with a bunch of other organisations - a bit more comfort that someone in the mainstream listed environment has been the first," he said.
The Tasmanian-based financial institution is listed on the Australian Securities Exchange and has funds under advice of $771 million.
MyState said it is committed to making the new platform the preferred investment platform for its clients, subject to the client interest test.
"MyState has $700 million in funds under advice and we expect over time to get a good proportion of that, so it is going to be material for Powerwrap," Naoumidis said.
MyState managing director John Gilbert said the choice for the platform was partly motivated by the Future of Financial Advice reforms.
"Our clients have told us they want a wider choice of investment outcomes, as well as greater transparency," Gilbert said.
"Transparency is also the key requirement of next year's proposed Future of Financial Advice reforms. Our new platform will enable us to get ahead of the competition with a more flexible, lower-cost offering; one that delivers what investors want, and where the industry is heading," Gilbert said.
Powerwrap's platform is based on Praemium's technology and the two companies have a fee-arrangement for the distribution of the technology.
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