A brief summary of the benefits of the CIMB Wrap Account is presented below:
| CIMB Wrap Account | Other Banks
(Non-Wrap Account) |
Upfront Fee /
Sales Charge | Capped at 4% (CPF trades capped at 3%) | Capped at 5% (CPF trades capped at 3%) |
Switching Fees
& Charges | Clients are able to switch funds, inter and intra fund houses, for free, without incurring additional upfront fee or sales charge. There is no limit on the number of free switching transactions | When clients wish to switch funds, it will be a sell and buy, incurring an upfront fee / sales charge for the new investment. |
Adviser Remuneration | Advisers are remunerated at the point of sale and annually. Both Advisers’ and clients’ interests are aligned as the annual advisory fee is based on how well the advisers grow the clients’ assets. Advisers are incentivised to provide on-going service and advice so as to keep and grow clients’ assets with them | Advisers are remunerated only when the sale is made. This encourages a sales based approach to financial advice instead of needs based advice. |
Portfolio
Solutions Services | Advisers can actively manage their clients’ portfolios and react to markets movements better without incurring hefty fees in terms of upfront fees. This is a win-win arrangement which encourages long term relationships between clients and their advisers | As a result of the existing remuneration structure, some advisers tend to ‘churn’ the clients by encouraging frequent and unnecessary sell and buy transactions to grow their commissions |
Terms and Conditions governing the CIMB Wrap Account can be found here
Total Wealth ManagementAt CIMB Bank, we are committed to deliver tailored solutions which meet your wealth management needs. Our Personal Bankers and Relationship Managers are equipped with portfolio advisory skills to ensure that:
| • | Advice is delivered from a long term financial planning perspective – we take the time to understand your financial health and needs so that we can deliver the relevant solutions for you; |
| • | Our product recommendations are supported by an in-house team which reviews the unit trust funds’ risk characteristics and performance data on a periodic basis |
| • | Your portfolio is reviewed every 6 to 12 months to ensure that your investment holdings and performance are in line with your objectives; and |
| • | With the unique CIMB Wrap Account, you have the opportunity to save on fund switching costs, and hence this offers the potential for better investment returns in the long-term. |
Current Accounts
