FIO Fin.Objects

    
  Financial Objects PLC
  30 July 2008
   
    

    Wealth management firms expect improvements from outsourced services, Financial Objects survey reveals
    Insourcing favoured for client service quality

    London, 30 July 2008 - 68% of private client wealth managers in the UK outsource to third party administrators (TPAs), yet 54% would
consider taking outsourced processes back in-house, according to a recent e-survey jointly sponsored by Financial Objects and Microsoft, and
conducted by Summerson Goodacre. 75% of survey respondents stated that they felt improvements could be made to outsourced services,
particularly in the mid-front office functions of asset management, client reporting, and performance and trade execution. Furthermore,
while outsourcing is deemed to deliver more cost benefits, when it comes to the quality of client service, insourcing was overwhelmingly
favoured. 

    Quality and cost were deemed the most decisive factors for wealth management firms looking to outsource and the TPAs surveyed also cited
this as the most important aspects their clients look for. When asked about pricing model preferences, most wealth management respondents
opted for a hybrid of fixed fee and volume based. While most TPAs said they offer this, most also offer pricing models with additional
charges for ad hoc user requests, which - in stark contrast - is the pricing model wealth management firms least prefer.

    "Our survey results show that in most cases, third party administrators are in tune with what their clients want and as a result, most
wealth management firms are satisfied with their outsourced services," said Brent Randall, managing director of the Wealth Management
division at Financial Objects. "However, the findings also show that some needs still aren't being addressed. For example, less than 15% of
respondents were satisfied with client reporting and performance measurement services. Clearly, technology can improve this, so TPAs must
ensure they are using the right tools to best service their clients." 

    Ian Wilkinson, Financial Services industry manager at Microsoft commented: "Most wealth management firms want their third party
administrator to provide portfolio modelling, yet the majority of TPAs don't yet include this in their service offering. If service
providers are to fend off competition, they must listen to the needs of their clients and make better use of technology to show
differentiation."

    The survey results also found that 85% of third party administrators would consider adding a third party tool if it increased their
competitiveness. 83% of wealth management firms already use third party systems and 85% said that technology was highly important in
supporting business growth.

    The e-survey, which was conducted in June and July 2008, was designed to source information on the use of third party services conducted
in June and July 2008. 60 wealth management firms responded to the survey and 25 third party administrators. The survey results were
presented at an industry seminar at the City of London Club on 18 July, which was chaired by Michael Wilson, business editor of Sky Business
News. The event also featured a panel session, which was chaired by Bernie Till, former vice president of the DTCC International Division.
The panel speakers were: William Kirkwood, head of investment administration client services at Adam & Company; Jason Nabi, UK head of
Financial Solutions at BNP Paraibas Securities Services; Alan Philpot, CEO of Penson Financial Services; Chris Evans, vice president - head
of retail sales at Pershing Securities; and Ian Partington, head of sales at HH Securities. 

    The survey results are available on request.

    - ends -
    About Financial Objects plc 
    Financial Objects is an international supplier of software solutions to the financial services sector. It delivers innovative technology
solutions for banking, wealth management and risk management. A Microsoft Gold Certified Partner, Financial Objects aims for its customers
to benefit from new, comprehensive, integrated products and services. It designs, develops and continually enhances its software
applications to meet both customer and regulatory requirements. 

    Founded in 1995, Financial Objects has more than 500 customers and is listed on the Alternative Investment Market (AIM) of the London
Stock Exchange. It employs more than 300 people across the world with headquarters in London, UK and a research and development centre in
Bangalore, India.

    For more information on Financial Objects please visit www.finobj.com


    Financial Objects
    Nicola Hamilton     Tel: +44 (0) 20 7420 3308
    Metia
    Flora Wilke            Tel: +44 (0) 20 3100 3715 
        

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