Has anyone had any experience using cash management providers like Insignis or Cascade? It would be useful to hear peoples experiences.
Used Cascade on a number of occasions.
V happy. (Us and clients)
I have used Cascade a few times no issues with them.
I like Flagstone but theres not much money in it for the adviser. You get 0.15% commission of the annual charge of 0.25%
Hi, hope it is okay to bring up an old post, rather than starting a new one. We are now getting a lot more queries about cash management.
We have looked initially at Flagstone, but seems to just be a referral service with a mark up for the client and us being able to view, but not action or apply.
Does anyone have any ideas for a cash management platform that would let us apply on behalf of a client and choose individual accounts, and then ideally switch as need be? We have clients asking for this as they do not want to go through the application process and choose rates themselves. If this option is available, is any ongoing fee available? We would of course get the client permission before applying for an account or switching.
Another option we would like is a cash platform that automatically moves a client's money to the best rates available on instant access, or when a fixed term ends. Basically a similar idea to the services that move individuals automatically from one gas/electric provider to another each year to get the best rate. Does anyone know if such a thing exists? We do not mind if this is a direct to client offering or via an adviser, as the important thing is to take the hassle away from the client of constantly looking and switching.
I looked at Insignis a few years ago so not sure how much has changed, but that seemed a slightly more proactive service compared to Flagstone. It is also approved by some SIPP providers (Curtis Banks mentioned it). There was also certainly the option of an ongoing fee. Not sure either are quite the panacea you are looking for though.
We've been using money market funds of late (BlackRock Sterling Liquidity) accepting there is a small risk of capital loss but yields are attractive at the moment, in some cases better than instant access cash management. We are also exploring using individual gilts in portfolios to hold to maturity. I know a few DFMS have recently launched lowish fee gilt portfolios matched to a client's liquidity needs so that might work as well? Given the coupons are quite low, the majority of return will come from growth so it should be more tax efficient than cash.
Gilt portfolios are very good for short-term laddered liquidity, particularly for high earners, as almost all the return comes from capital gains, which aren't taxable.
Thank you both for your replies. I have had a look at Tatton's money market portfolio, and will look at some others. We have also gone to Insignis, and they definitely seem to offer a service more in line with what we would like.
We use Insignis a lot and quite happy with them and they are cheaper than Flagstone. You would be able to act on client's behalf for rate switching and you can select this option when you open account.
Haven't heard about a company that automatically switches accounts for you. The issue could be that your client needs to agree every switch as he / she may hold funds in that particular bank hence not qualifying for full £85k FSCS protection.