My answer to your question - because of the in-house...

My answer to your question - because of the in-house software.

Developing your own Wrap platform is really hard. These guys have done it, so they pay nothing to use it other than development costs. BT, Colonial First State, XPL, Hub24, etc. all have a platform, but that's most of what they do. And they charge a fair bit to use it.

Indy said straight up that the strength of their offering is their software. All integrated, developed in house. It's part of the low cost structure they can run. IIRC, CFS were charging about 50bps for FUA on their wrap platform a while back, although it's more competitive now. Nevertheless, 50bps would strip over $1m from the Administration margin, a decrease of 15% for this segment. And we don't know how this would impact the management business, because software is no longer integrated.

To add to that, in this business it's very hard to avoid stupidity. That is, poor incentives that cause advisers/planners to bill incorrectly, promote the wrong products, etc. FID have done this, while the competition continue to blow themselves up. But it's not easy. Simply by not doing anything stupid, they're well ahead. Not easy to replicate (or the banks would have done so)

@Ivanovich will certainly have a more informed view. But this is my understanding.