Macquarie tipped to join UK wrap invasion

Macquarie could be the latest Australian wrap provider to try its luck in the UK, according to a report released by Forrester Research late last month.

In a publication titled ‘Wrap mania hits the UK’ authored by Alyson Clarke and Ricardo Arruda, Forrester detailed the various strategies taken by Australian platform technology specialists such as InfoComp and Bravura while suggesting Macquarie was also a natural candidate to launch a wrap in Britain. “Rumor has it that Macquarie Bank will make a play in the UK market, replicating its success with independent advisors that made it Australia’s second-largest wrap provider and seventh- largest platform,” the Forrester report said. The study recommends UK institutions looking to launch a wrap should consider how Australian groups such as BT and Macquarie focused on securing distribution before hitting the market. “With at least eight new wrap platforms expected to hit the UK market in the coming year and few UK wrap vendors, it’s largely Australian software providers winning the deals. To avoid costly mistakes, firms must develop a solid business strategy that prioritizes distribution before they go shopping for technology,” Forrester said. The researcher said Australian platform providers are looking to the UK because the local market has reached saturation. “Credit Suisse recently announced its intention to close its Australian wrap platform, and rumor has it that other second-tier players like Skandia and Zurich Financial Services may also pull out,” Forrester said. “The maturing of the Australian wrap market, combined with the wrap mania sweeping the UK, means that many Australian vendors have decided to expand overseas.”