FNZ is scrambling to fix a technical glitch that has disrupted client reporting and trading for advisers using the Consilium platform over the last few weeks.
The malfunction followed the recent, long-awaited Consilium switch to the new FNZ One platform, intended to bring NZ clients into line with global investment technology standards.
According to multiple sources, frustration is building among the many NZ advisers who rely on the Consilium platform to manage client investments.
In a statement issued over the weekend, an FNZ spokesperson said: “The recent migration to the FNZ global platform with Consilium has encountered some early implementation issues which are being resolved as quickly as possible to ensure the platform is fully functional and optimised.”
James McDonnell, FNZ NZ chief, said the firm was “working closely with Consilium” to address the issues.
“The process of achieving full functionality has taken longer than it should have and we appreciate the support and understanding of the Consilium team and their advisers and clients who are affected,” McDonnell said in the statement.
With about $7 billion on the platform, Consilium is the single-largest FNZ client in NZ.
It is understood FNZ has waived fees with potential compensation also on offer for any losses incurred by advisers and clients due to the platform problems.
Last year the UK Citywire trade publication reported the Quilter advisory firm also experienced technical issues post an upgrade to a new FNZ-based system.
The Wellington-founded FNZ is now a London-headquartered global investment technology powerhouse with about US$1.5 trillion in assets under administration.
Investment platform transitions are notoriously complex affairs, especially when mapping global systems – as per FNZ One – to local jurisdictions with different tax systems, for example.
However, ultimately the new platform should provide “access to global FNZ technology that has been localised for New Zealand advisers and their clients”, the FNZ statement says.
“Consilium and FNZ are committed to providing advisers and their clients with world-leading technology and are confident that once this transition period is complete, this new platform will set the standard for wealth management platforms in New Zealand.”
The FNZ news comes after another technology-related bungle in the NZ industry last week that saw the leak of personal details of some 7,566 Booster superannuation scheme members in a hack.
Booster said hackers accessed the information through an employee’s personal computer that was hooked into the company’s system in a breach of protocol. A second human error allowed the hackers to by-pass another log-in security measure.
Paul Foley, Booster chair, told media: “Booster apologises and deeply regrets the impact of this incident on our customers. We want them to know we are doing everything we believe we can to respond to this incident.”
In a statement on its website, Booster says. “On Monday 8th August we became aware of a data breach which affected our Booster SuperScheme customers. No KiwiSaver or investment clients were affected in any way. We are currently investigating to understand the exact extent of what has occurred but are confident this is an isolated incident. We have communicated directly to all affected customers to let them know what has happened and assure them that their money and investments are not impacted.”
Booster has warned customers caught in the breach to be alert for any potential scams.
While serious technology failings are rare – or rarely made public – in the NZ investment industry, the Booster incident comes about two years after rival manager, Generate, reported the leak of personal details of about 26,000 KiwiSaver members due to a hack.