Listed wealth management firm IWL has rolled out a new portfolio administration and tax reporting service two days before a decision on whether its merger with Commonwealth Bank of Australia (CBA) will proceed.
A court decision on the proposed merger between IWL and CBA is expected tomorrow.
The new product, Virtual Broker Wrap, is the result of the integration of IWL’s Echelon portfolio offering and financial services broking product, Virtual Broker.
“Technically it’s an IMA [individually managed account]. Investors who operate through a financial planner or an accountant or wealth manager retain their own HIN [holder indentification number], with the exception of wholesale managed funds, all the assets remain in their name,” IWL general manager whole and retail business development Ian Aspinall said.
“The benefit it’s got over its competitors in the marketplace is that because the contract note engine is now integrated with a portfolio administration engine, it’s a straight through process.”
Aspinall said the product supported Australian Securities Exchange options, equities, warrants, listed property trusts as well as being able to report on fixed interest, overseas shares, cash management and margin lending.
Due to the scheme of agreement made between IWL and CBA, Aspinall could not comment on how the proposed merger of IWL by CBA would affect Virtual Broker Wrap.
He could only speculate by saying: “I’ve not had any dialogue with CBA on their plans, though I can tell you that if CBA’s plans are to buy IWL so they have a foothold in the wholesale business, which I believe is the case, then obviously this is going to meet their needs quite well.”
IWL shareholders last week voted in favour of the merger of IWL into CBA’s CommSec division. Votes in favour of the merger totalled 99.70 per cent.
The scheme remains subject to the approval of the Supreme Court of Victoria at a hearing currently scheduled for this Friday.
If the court approves the merger, the transaction will be implemented on November 26.
CBA announced in August that it intended to acquire the whole of IWL for more than $370 million.
In April, IWL sold its financial advisory software, Visiplan, to Iress for around $50 million. Iress also owns competitor Xplan.
