Novia Financial is set to go live with its multi-currency offshore platform Novia Global at the end of September. The new platform is an offshore version of its UK platform aimed at providing a system for advisers serving expats across different jurisdictions and offer offshore investors greater access to discretionary fund manager (DFMs) and offshore funds.
The platform is designed to respond to the raft of regulatory changes being implemented internationally, as many countries turn away from an opaque, high commission landscape, towards cleaner products and greater oversight on advisory practices, according to Bill Vasilieff (pictured), chief executive at Novia Financial.
“The regulatory landscape has changed and demand for transparent wealth management systems has also increased,” said Vasilieff. “Novia Global will enable us to provide a truly transparent online platform to the international expat market.”
The firm’s plan in relation to Novia Global’s distribution, said Vasilieff, is to continue working on partnerships with firms that are active in the international adviser market servicing the global expat community with a focus on the Middle East, Hong Kong, Singapore and the Channel Islands. “The platform is designed to address RDR-like regulatory changes being implemented internationally around opacity, high commissions, complex products and advisory practices,” said Vasilieff.
Novia Global will replicate the firm’s UK platform which has more than £4bn in assets under management (AUM) and already offers structured products, said Vasilieff who pointed that in the UK there is still some skepticism around structured products, and that as a result the majority of advisers are not using them.
“[However,] most of the fund platforms out there are focused on trusts and Oeics (open ended investment companies) and don’t include structured products because of technology and issues around processes,” said Vasilieff. “Some of the [mis-selling] scandals around structured products have put advisers off, but we believe they can sit alongside other investments in our platform. Our platform is based on an open architecture approach and we already work with a number of structured products providers in the UK.”
Initially the platform will offer access to five currencies – sterling, euros, US dollars, Hong Kong dollars and Swiss francs – and more than 1,000 funds, with the availability of assets varying depending on the jurisdiction.
The platform will in a first stage support individuals and trusts based in the Channel Islands, the Isle of Man and Switzerland, and will be passported across Europe and into other jurisdictions as it expands.
Novia Global, said Vasilieff, will offer a suite of portfolio modelling, construction and reporting tools, as well as a global investment account and retirement account for recognised overseas pension schemes. The new offering will offer clients access to offshore funds, exchange-traded funds (with aggregated trading) and structured products with direct equities. Over coming months it will also offer an offshore bond. A choice of remuneration options will also be available to suit the adviser and trustee’s business models.
The challenge, said Vasilieff, will be around advisers changing their business models to adopt the platform, “which can take a bit of time”, and for those who want to remain independent to cover the whole market from a product perspective.
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