The NZX Wealth Technologies investment platform has shifted two new financial advisory clients across from rivals Apex and Consilium with four more queued-up or already aboard.
Following a bumper 2024 that saw 11 new clients on-platform, the NZX service confirmed Private Wealth Advisers (PWA) and Fortitude Financial as first arrivals this year.
It is understood PWA and Fortitude have switched to Wealth Technologies from the FNZ-backed Consilium and Apex (ex Aegis) platforms, respectively.
The Auckland-based PWA boutique houses five financial advisers while the Christchurch firm, Fortitude, has a fully-fledged adviser complement of four.
PWA has completed the transition to Wealth Technologies with Fortitude expected to finalised the platform journey later this year.
The NZX-owned business, headed by Lisa Turnbull, has four other financial advice providers signed-on year-to-date, too, including two “emerging” businesses – one already on the platform – and two “established” oufits set to transition over 2025, according to a release.
Turnbull said in the statement: “We appreciate the collaboration with all parties involved in these transitions and look forward to continuing to support PWA, Fortitude Financial and all our adviser clients as they grow.”
Following the recent growth, Wealth Technologies chief operating officer, Stephen Jonas, has taken on the mantle of chief client officer.
Meanwhile, Mark Oldridge moves from head of implementation and support to replace Jonas as COO.
As at the end of April, Wealth Technologies reported more than $16.7 billion of funds under administration (FUA), up 26.3 per cent year-on-year.
The NZX expects the platform FUA to increase to between $30 billion to $50 billion over the next few years, partly as it takes on administration duties for the in-house Smart products.
Wealth Technologies achieved ‘cash-flow breakeven’ from external clients at the end of last year, the NZX reported.
Platform competition has spiked higher in recent years with Wealth Technologies, Apex (formerly Aegis then MMC) and FNZ vying for adviser affections.
Last week the sale of Consilium to FirstCape added further spice to the adviser technology mix.
With more than $9 billion of funds under management, Consilium is the largest single FNZ client in NZ.
FNZ is facing a broader global corporate distraction as a group of employees is poised to sue the business over alleged breaches that saw staff-shareholders diluted in a series of capital-raises by institutional owners.
In a report last week, Canadian publication, The Globe and Mail, cited a letter from FNZ lawyers refuting the employee-stockholder claims as “simplistic and inaccurate”.
“The alternative to raising new capital was potentially catastrophic to all shareholders,” the FNZ legal letter says, according to The Globe and Mail.
“… [Dilution of employee-shareholders who didn’t subscribe to catch-up offers does not make a capital raise, undertaken to ensure the survival of the Company, unfairly prejudicial.”
Canadian pension funds represent two of the largest institutional FNZ shareholders including Caisse de dépôt et placement du Québec (CDPQ), which owns 44 per cent of the global financial technology firm.
The FNZ staff-shareholder class action was expected to land in NZ courts before the end of May.
Meanwhile, the company founded in Wellington by Adrian Durham in 2003, has named Cornelia Coman and Tom Shard as respective heads of Europe and growth.
Shard moves to the newly created role from his previous position as head of North America while Coman comes to FNZ after almost 20 years in senior roles for ING in Europe.
Both Shard and Coman report to FNZ group president, Roman Regelman.
“These appointments reflect our commitment to delivering sustainable value to clients and investing in world-class leadership,” Regelman said in a release. “Cornelia and Tom bring exceptional expertise and track records in driving growth, strengthening client partnerships, and leading transformational change.”
FNZ has seen a string of top-level executive changes over the last couple of years, notably, with Durham stepping down as chief in favour of Blythe Masters.
Masters is a principal Motive Capital Partners, one of the more recent FNZ institutional shareholders.