Are wrap accounts the next big thing?

Every few years, an industry idea is hailed as ‘the next big thing' (TNBT). Right now, wrap accounts...

Every few years, an industry idea is hailed as ‘the next big thing' (TNBT). Right now, wrap accounts seem to be the current example. TNBT syndrome has some fairly predictable symptoms. First, not everyone agrees exactly what it is, but there is nonetheless no shortage of new entrants willing to sell it to potential customers. In the UK, the consensus view might best be summarised that ‘wrap' is the bundling of many different product types within one overall wrapper enabling transaction, custody, valuation, fee collection and reporting services - basically, a fund supermarket but exten...