Australian Financial Services has become the first national dealer group to sign onto investment administration provider, Powerwrap Limited.

AFS, with funds under advice of $5.5 billion, 222 advisers and sustained continual growth, is the first national dealer group to approve the Powerwrap platform and it marks the second agreement for Powerwrap in a fortnight.

The Powerwrap model, built on Praemium Limited's proprietary V-Wrap and SMA technologies, boasts investment administration and tax management functions not available from traditional legacy platform providers.

In the current market, in view of legislative changes challenging the advice industry, advisers will need an efficient business model and better offer for their clients.

Group chief executive of Praemium, Arthur Naoumidis, said the Powerwrap agreement with AFS had wide implications for the advisory marketplace.

AFS chief executive and managing director, Peter Daly, said signing with Powerwrap reflected his group's belief in seeking the best so as to benefit clients.

"AFS Group is committed to building its marketplace reputation and success by supporting its practices with innovative products, adapting and managing change, building flexible and robust business models, streamline internal processes and providing the highest standards of client service and support," Daly said.