Colonial First State (CFS) announces a major revamp of its wrap business, with a new wrap platform expected to open to new business in late 2022. CFS has appointed FNZ as the platform provider to replace its current solution under its unique platform-as-a-service model. As part of the new partnership, CFS and FNZ will use their combined strengths to significantly grow CFS’s business in the Australian wrap platform sector.
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The launch of the new wrap platform marks the next stage of the $430 million investment CFS is making across the business over the next four years. The replacement of technology underpinning the current wrap platform will increase CFS’s competitiveness and is expected to drive significant growth in coming years.
The agreement with FNZ will see CFS launch the new wrap platform combining FNZ’s state-of-the-art technology and a range of business services to create a market leading proposition for financial advisers using CFS’s wrap platform and underpinned by a scalable operating model. The transformation will deliver a significantly improved experience for advisers and their clients, providing the foundation for CFS’s future growth plans to be one of the best players in the platform market.
FNZ is a global wealth platform that provides many of the world’s leading financial institutions with a unique integrated end-to-end software, technology infrastructure, and investment operations platform in 18 countries across Asia Pacific, Europe and North America. Trusted by more than 150 major financial institutions, FNZ has over $A2.1 trillion in assets under administration, which represents the combined savings and investments of over 20 million customers. In Australia, FNZ has grown rapidly in recent years with over $A70 billion in assets on its wealth platform service.
The new wrap platform will offer market leading features in the areas of investment selection and managed account management, adviser services, advice tech integration and data management. More details will be announced closer to the platform’s launch.
CFS and FNZ are already working directly with a group of advisers to design the new platform to make it easier for advisers to deliver their guidance to clients.
CFS and FNZ have also agreed a strategic partnership arrangement to distribute the wrap platform to new clients of CFS. This will include CFS actively pursuing M&A and client acquisition opportunities, by leveraging its scale, brand, depth of adviser relationships and technical expertise, supported by FNZ’s wealth management platform.