Today’s guest commentator is Paul Bradshaw, Chairman of Nucleus. The following views are his personal views and not necessarily those of The Platforum. Thanks to Paul for his contribution.

Daunting as the task is, what a pleasure to be a guest commentator on this Friday highlight-apologies in advance if I fail to live up to Holly’s standards

Interesting that AIFA are going to prepare their own IFA wrap guide - I am sure everyone will be delighted to give them help and input. The explosive growth we have all enjoyed since the second half of 2009 is guaranteed to provoke (properly) much more attention from all the stakeholders in the wrap business - from consumerists to regulators. Although it will increase all of our overheads, a fundamentally transparent business like wrap should welcome interest and involvement positively from wherever it arises.

Chris is right that IFA decisions will be subject to greater scrutiny going forward and it’s great to see the largest IFA trade body investing in guidance and support for its members now to avoid future problems.

But the big two stories of the week were that icon of my youth, Prudential, finally and irrevocably deciding its future is in Asia and Transact’s decision to reduce prices. I think that viewed from the UK they are the same story-margins in the UK are very tight.

Prudential was built on the basis that its shareholder profit would be 10% of the policyholders’ return, but margins anywhere near that are but fond and distant memories for UK product providers in mainstream markets. Holly has often argued here that wrap margins should be maintained at a reasonable level to ensure adequate development of the market, but this is an exploding market and that reality will attract competition at every level very much including price. What the Transact move will force is even more of an aggressive land grab as everyone comes to recognise both that scale is everything and that the UK retail market future is fundamentally that of platforms.

Challenging times for wrap management teams, but with stunning growth and the really powerful institutions looking elsewhere, what a fabulous place to be.

Finally, I am sure I speak for all of us in wishing Holly a great birth experience and how much we all look forward to her return to these pages.

Paul