“A commendable track record” as abrdn’s Wrap and Elevate retain their AKG A rating

27 September 2023
Both abrdn Wrap and abrdn Elevate have retained their AKG A rating for financial strength for six and five years respectively.

Not only have the platforms kept the ‘superior’ rating for financial strength, abrdn Wrap and abrdn Elevate are currently the only platforms in the market to meet the standards required to achieve AKG’s ‘A’ rating (as at 15 September 2023).

“An AKG ‘A’ rating is the highest rating available for overall financial strength, so for abrdn’s platforms to retain this rating for successive years is commendable,” explains AKG’s Communications Director, Matt Ward. He adds: “This level of continuity should give advisers reassurance of Wrap and Elevate’s consistent financial strength throughout the challenges of the past few years.”

Alastair Black, abrdn’s Head of Savings Policy agrees: “Advisers need to be confident that their platform has the resource to meet fluctuating markets, to reinvest for the future and to deliver a reliable client experience for the long term.

“Our platforms long track record of AKG A-rated financial strength demonstrates that long-term commitment,” he explains.

Behind AKG’s ratings: accessibility and comparability

AKG assesses an organisation’s financial strength by using a balanced scorecard approach which considers a wide range of factors relevant to the business. These include:

  • capital and asset position
  • expense position and profitability
  • structure and size of its assets/funds
  • parent strength (and likely attitude towards supporting the business)
  • operational capability
  • risk management framework
  • operating environment and ability to withstand external forces.
“While the assessment behind AKG ratings is complex, the scale used to present them is deliberately simple for accessibility and comparability,” Matt explains.

AKG’s scale runs from D (lowest) through to C, B-, B, B+ and A, the highest rating achievable for financial strength.

Matt adds: “Our ratings reflect our customer-focused assessment of an organisation’s ability to maintain its operational capability to meet customer needs. And it’s why AKG’s ratings and reports are designed for ease of use by advisers who are working on behalf of their clients when considering a platform’s financial strength before placing their assets with them.”

Financial strength and the Consumer Duty

With the Consumer Duty now in place, advisers will also be re-examining how they carry out their platform due diligence. The rules require firms to think about the parts of their platform due diligence that matter the most to them to be able to deliver good outcomes for their clients.

“When placing clients’ long-term savings on a platform, no criteria is as important to an adviser firm as its financial strength,” says Alastair. “Our AKG A rating ensures we can look after advisers and their clients for as long as they need us.”

In partnership for the long term

AKG has provided ratings and market support to financial services for over 30 years. The company is the industry specialist in assessing the underlying strength of a platform business.

“When advisers are placing their clients’ assets on a platform, they’re placing them for the long term,” Alastair points out. “Advisers don’t want to spend time moving their clients’ assets around when it could be better spent with clients, helping to deliver good outcomes for them.”

Wrap and Elevate’s long track record of achieving an AKG A rating for ‘superior’ financial strength only strengthens the confidence advisers can have in partnering with abrdn.

Take a look at AKG’s full assessment reports for Wrap (PDF) (company assessed by AKG is Standard Life Savings Ltd, part of abrdn group) and Elevate (PDF) (company assessed by AKG is Elevate Portfolio Services Ltd)

Access Wrap (PDF) and Elevate’s (PDF) due diligence guides

The value of investments can go down as well as up and your clients could get back less than they paid in

The views expressed in this news story should not be regarded as financial advice.

Standard Life Savings Limited (SC180203), part of abrdn group, provider of the Wrap Platform, Wrap Personal Portfolio and Wrap ISA is registered in Scotland at 1 George Street, Edinburgh, EH2 2LL; and authorised and regulated by the Financial Conduct Authority. It is a member of abrdn group, which comprises abrdn plc and its subsidiaries

Elevate Portfolio Services Limited is registered in England (01128611) at 280 Bishopsgate, London EC2M 4AG and authorised and regulated by the Financial Conduct Authority.