Cash investing platform Cashwerkz claims its service proposition to financial advisers and their SMSF clients has been strengthened as a result of the banking royal commission.
“Because we don’t charge a fee and are agnostic, our solution is exactly what [type of system] the banking royal commission is talking about,” Cashwerkz director John Nantes told selfmanagedsuper.
“If you use our solution, you’ll have an array of banks [and their products] and an array of rates and you get to make a decision in your best interest, or if you are a financial adviser, you actually get to make a decision for your clients in their best interest.
“So it’s not a situation where the individual says I’ve only got one option so I’ll just use that or it’s too manual and too hard so I’ll only deal with two banks.”
To this end, Nantes said the platform is a valuable tool to assist advisers in satisfying the best interest duty under the Future of Financial Advice legislation.
“Using the platform means you can literally prove you’ve done the right thing by your client in this particular asset class because you’re agnostic to the bank and you’ve just made the best choice you can for the client to get them the best outcome possible,” he noted.
“That’s powerful and it’s all auditable and solid.”
The Cashwerkz platform gives users access to a variety of cash investment products, including term deposits, from different authorised deposit-taking institutions (ADI) via an online portal.
The facility enables transfers to be made directly from an individual’s bank account, for example, an SMSF cash management trust, to the chosen financial institution without receiving or handling the investor’s money.
The investor is not charged for the service as a fee is paid to Cashwerkz from the ADI.
In January, money invested via the platform reached $1.5 billion.