• The FinClear HIN Platform is the first zero-brokerage, non-custodial alternative to ‘wrap’ platforms in over 30 years.
• FinClear is the only Australian company to own the full technology and licensing chain from desktop to CHESS, enabling efficient solutions across portfolio management, trading, clearing and settlement through to the adviser’s choice of administration platform.
• Based on individual Holder Identification Numbers (HINs) allowing for full direct ownership by the end investor and the numerous advantages this enables.
April 2nd (Sydney): FinClear, the Australian wealth, trading, clearing and settlement technology firm, today launched Australia’s first low cost alternative to platform products for wealth managers.
The FinClear HIN Platform is a single low-fee, zero-brokerage product that allows advisers to hold their clients’ investments on their own unique Holder Identification Number – HIN.
“Australia is almost unique in the world in that every investor here has or should have a HIN,” said Manging Director David Ferrall. “This came about alongside CHESS in the late ’80s after the chaos of the 1987 stock market crash, and was intended to provide individual electronic ownership for every Australian over their shares. Ironically, the dominance of the bank-aligned platforms has meant many Australians actually don’t hold their investments this way – and the price for convenience has been high, with fees up to 2% of their total portfolio, and major portability issues if they want to move off a platform”.
The FinClear HIN Platform makes the investment process significantly cheaper than a comparable portfolio held in a custodial – ‘wrap’ – model and gives the investor and their adviser greater control over and transparency into their portfolio. FinClear Chairman David Hancock said the new model had been enabled by recent investments in technology, as well as the burgeoning of listed products.
“We’re now at a point where at least 90%, if not 100%, of a regular investor’s diversity needs can be met by listed products, and technology has progressed to the point we can provide the same packaging and reporting benefits as traditional platforms without using an expensive, fee layered custodial model.
“Where the recent regulatory focus has been on adviser fees and ‘fee for no service,’ we expect over time this will extend to ‘incidental’ or platform fees, where end clients are being charged exorbitant amounts for essentially technology-enabled reporting capabilities that make advisers’ work easier but provide little value to the end investor.”
The FinClear HIN Platform is available as a wholesale solution to financial planners, wealth advisers and stockbrokers, enabling them to immediately deliver a low cost HIN-based solution to their end clients.