November 2, 2020
13 days to deadline
€1,000,000 The estimated value of the project.
Memorandum of Understanding - One Member as Prime The preferred type of arrangement and consortium structure.
December 1, 2020 - January 4, 2021 The expected duration of the consortium.
Ireland The country from which the consortium will be overseen.
Solutions offered by product providers are invariably homogenous, coming off a manufacturing assembly line across life offices and other asset managers. This dilutes the capacity of free thinking retail financial intermediaries in crafting bespoke solutions for HNW and Mass Affluent clients, who typically want to experience unique service and solutions. Not all intermediaries think this way or are strategically focused on this market.
The objective is to establish a small network of like minded firms who can benefit from pooling intellectual and commercial resources for the purposes of developing lines of product and service supply that would otherwise be unavailable without combining in this way.
Strategically the goal is to develop sustainable competitive advantage in this sector while providing considerable added value to clients. The intention is to keep the network tight and exclusive.
The first objective is to develop lines of discretionary asset management for members that differentiates and competes against the mass market offerings, eg. Davys platform.
The second objective is to develop lines of direct asset supplies such as property, precious metals and other alternative assets that widen the scope for the member firm in diversifying for clients at a time when conventional risk assets appear inflated.
The third objective is to provide a conduit for investment in private equity, EII etc thus bypassing mass market choice.
Central Bank authorisation under Section 10 of the Investment Intermediaries Act so that product choice is not restricted. Evidence of already trading in investment products that are not manufactured by domestic life offices, where the level of trading exceeds 10% of existing revenues. Firms already adopting fee-based models and are not captive to focusing purely on upfront sales commissions but are committed to building the business on the basis of recurring fees on asset values.
It is envisaged that the lead firm will act as the apex and use its spare capacity to provide support and dynamic learning to member firms.
Each firm will have its own starting point and capacity constraints in dealing with the challenges of taking on new ideas and ways of doing business. This poses a risk in terms of changing from existing methodologies.
The next risk is the obvious one that any confederation like this poses to itself, where some members do not authentically engage and use it as leverage to pursue other agendas.
5 partners required Number of partners required, per lot where relevant.
Reference #: 14
Published: March 4, 2020772