Melbourne financial planning firm, Lateral Thinking, has selected Praemium-backed Powerwrap as its preferred supplier of portfolio administration platform services.

The new wrap platform uses the technological expertise of ASX-listed Australian portfolio administration provider, Praemium Limited, whose V-Wrap investment reporting and tax management services support more than $35 billion in reported assets.

Peter Rowley, Chief Commercial Officer at Powerwrap, said that "while we have a number of advisers who are already using our platform, Lateral Thinking is the firm's first significant wholesale client relationship."

Rowley said the deal was in its implementation stages and is committed to more than 12 months to set Powerwrap up for Lateral Thinking planners.

"[Our] approach will be to select particular planners and focus on them first, and then help position the [platform] to the broader Lateral group," said Rowley.

"Powerwrap has developed an industry solution for financial planning and accounting practices to achieve business efficiencies, by using modern investment administration and tax management functionality that's not available from the traditional wrap account and master trust providers," said Powerwrap chief executive, Andrew Varlamos.

Varlamos said Powerwrap will continue working with Praemium, its technology partner, to meet the needs of planning and accountancy practices.

Lateral Thinking's managing director, Paul Huggins, said there were a number of reasons for entering into a wholesale business relationship with Powerwrap.

"Although we've had our own license for more than 19 years, we're a relatively young… company that focuses on strategic advice rather than just offering investment products," he said.

"One of the key factors in partnering with Powerwrap, is the ability of its platform to support client demands for more sophisticated investment outcomes which increasingly requires a greater focus on direct assets and the ability to report and manage tax outcomes at the consolidated portfolio level," Huggins said.