XWrap is a standalone Netwealth administration service which enables an AFSL or its advisers to enter transaction information relating to non-custodial assets which their clients own.
This information flows into the Netwealth reporting suite to generate an holistic picture of the client’s wealth. It is important to note that all assets entered into XWrap are held externally to Netwealth, and the AFSL or its advisers are responsible for data integrity and accuracy.
This article is for the use of Adviser Representative's (AR) only. If you are a client and wish to learn more about this feature, please contact your Adviser Representative or Netwealth at contact@netwealth.com.au.
Netwealth has built the functionality to allow an AFSL or its advisers to upload:
- Asset information – to record assets and unit prices.
- Transaction information – to record specific transactions at a client level.
- Income information – to record income transactions including franking credits at a client level.
See more: https://www.netwealth.com.au/web/info/xwrap/
The benefits of using XWrap:
For those assets which are unable to be transitioned into Netwealth custody, XWrap is an administration tool which enables you to run multi-disciplinary practices, all of which flow into both the client and adviser performance reporting suite. You will have the ability to undertake purchases and redemptions on your client's assets held in custody via the Netwealth platform whilst you work with a preferred broker to settle listed security trades. You can administer Corporate Actions online and maintain the client's account in one central place.
What are the key features of XWrap?
An XWrap account is a separate account recorded in the relevant entity name which holds only non-custodial assets. As a discrete account you can easily distinguish between the custodial and non-custodial assets from a user view level, as well as providing an efficient way of amalgamating the assets for holdings and reporting purposes.
- Having the separate XWrap entity account allows you to easily distinguish between the custodial and non-custodial assets from a user view level, as well as providing an efficient way of amalgamating the assets for holdings and reporting purposes.
- Ease and efficiency of bulk uploading assets, prices, and transactions.
- Ability to enter transactions to cater for purchases, redemptions, income, call payments and return of capital.
- Ability to link income that has been credited to the Netwealth platform cash account with an XWrap income instruction for reporting purposes.
- The account inception feature will allow the user to generate a report based on the date the first XWrap transaction occurs rather than the Netwealth account opening date (if prior).
- A comprehensive balance and holdings report are available to access XWrap information across the AFSL’s client base.
- Whilst XWrap data is not incorporated in a client’s audited tax report, we reference the existence of XWrap assets in a client’s Annual & Tax Statements. The intention of including the value of these assets is to ensure the client can see the combined value of their accounts.
See more: https://www.netwealth.com.au/web/info/how-to/xwrap/
Setting up a XWrap Account:
- The XWrap Account will be set up by the adviser's office online after the initial Accelerator account is established, enabling the XWrap account to be easily linked to the relevant platform account.
- Alternatively, there is the option to open a standalone XWrap account (not linked to an existing Accelerator account). A username registration will need to be the first step, before linking the standalone XWrap account to the newly created username.
- The adviser will consent to the declarations in place as part of the account opening process, no client signature or authorisation is required to open an XWrap account.
- Please note that as Netwealth does not have any authority under the T&C's the client signs when they open a Netwealth IDPS account to deduct fees for assets that are not held in custody, we are unable to facilitate the collection of advice fees on XWrap assets.