A quantum step
for adviser-kind
National Mutual's new financial services company Quantum takes the master trust/wrap account concept further.ey
Friday, July 17th 1998, 12:00AM
Advisers using the new financial services company Quantum Financial Solutions will be able to make unbiased product recommendations for clients while still being National Mutual agents.Quantum was developed by National Mutual as a tool to help advisers match products to customer requirements. Currently 70 per cent of the company (reducing to a maximum of 50 per cent) is owned by National Mutual and advisory firms hold the balance.
The majority of these firms are highly successful businesses which have agencies with National Mutual.
Quantum’s ability to match products to customer requirements is based around software which does comparative analysis of the funds and contracts on offer from participating firms.
Advisers enter into the system a client’s needs, attitudes and preferences. The system then produces a report which lists and ranks the most suitable products in relation to the client’s preferences.
The client in writing can only overturn these approvals.
Currently advisers using the system are able to source risk products from AMP, National Mutual, Cigna, Tower, Royal & Sun Alliance, American International Assurance and Colonial. These companies represent nearly two thirds of the in force traditional life insurance market and were selected for the company by an Australian-based actuarial firm. IPAC Securities provided research on the investment funds side.
One of the key features of Quantum is that it gives advisers access to a greater range of products.
Although Quantum will be selling products other than National Mutual ones, National Mutual distribution manager and Quantum chairman Mark Wilson believes the company will get its fair share of sales.
"National Mutual products have never been more competitive," he says.
In many ways Quantum is a further evolution of the master trust/wrap account development which is taking place in New Zealand.
While the master trust/wrap account is aimed at streamlining the back office functions of an advisory firm dealing with investment products, Quantum encompasses both risk and investment products, and has a front end to it. That is it is used when dealing with a client, as opposed to just making the back office more efficient.
The company is looking to expand its product range to include fire and general insurance, mortgages, trust wills and estate planning and direct shares.
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