12 September 2017
GBST, which provides wealth administration software through its GBST Composer® platform, has upgraded its technology for wrap and platform providers to include new standalone annuity functionality to offer providers greater flexibility following pension freedoms.
The new standalone annuity product can be accessed via the Open Market Option (OMO), Immediate Vesting Pension (IVP) or a combination of both. In each case, multiple transfers from ceding schemes can be used to purchase one standalone annuity and a portion of the pension can be taken as tax-free cash.
The new product enhances the process of administering annuities on the GBST platforming, including:
The new functionality can also facilitate different adviser remuneration instructions, including percentage or amount based adviser charge, implementation fee or product provider funded commission.
As well as the upgrade to Composer®, GBST is also enhancing its Composer business integration server (CBIS) service to allow straight through processing from quote to account creation including recording of underwriting, insurance cover, income basis and joint life details.
David Simpson, Head of EMEA at GBST, commented: “Since the launch of pensions freedoms, we have been working closely with our clients to enhance our technology to support innovative products and services that take full advantage of the new flexibility around taking retirement income. There is still an important place for annuities within retirement planning, particularly for those with smaller funds. By streamlining and automating much of the work involved and creating a joined-up process, providers can offer more flexible pension options, while making it more viable for financial advisers to provide a retirement advice service to those with different sized pots.
“Our new annuity functionality is a significant step forward on what was previously available and illustrates our commitment to remaining at the forefront of innovation in the retirement space. It is further evidence of the investment we are making in our underlying technology to benefit our clients and prospective clients. This is the first of many significant developments scheduled for release to clients within their ongoing product roadmap and forms part our three-year plan to spend around AUS$50 million to ensure our products remain at the forefront of the industry.”
Retirement Advantage will be the first GBST client to use the new functionality. Craig Fazzini-Jones, Group CEO, Retirement Advantage, said: “We are very excited about the development of new annuity functionality which will complement the existing Retirement Account product on the GBST platform, and facilitate our migration of new business to a single platform for all annuity and pension drawdown products. This development also demonstrates how well initiatives can be implemented when product providers work in close partnership with technology providers.”
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Jenette Greenwood, PR Director
GBST is a specialist financial technology company which provides administration and transaction processing software for retail wealth management organisations and global and regional investment banks. Founded in 1983, GBST is listed on the Australian Securities Exchange under ASX ticker code GBT.