IRESS’s new United Kingdom-based wealth management division will have no effect on the financial services company’s Australian operations, IRESS managing director Andrew Walsh has said.
“We’re funding it separately, so it will be a separate team,” Walsh told InvestorDaily.
“The UK business will leverage the technology platform that we offer here like we do already in New Zealand, South Africa and Asia, so it’s leveraging what we have and will be funded in addition to what we do here.”
The new wealth division will be run by a local management team made up of directors from financial services consultancy firm AT8 Group.
The team will be responsible for management and growth of the new IRESS business.
IRESS intends to leverage off existing company capabilities, including its relationship with UK-based advisory firm Sesame Bankhall Group.
The UK financial advice market was facing a new regulatory regime from 2013 as part of the UK government’s retail distribution review, which would require advisory groups to operate under fee-based service models, IRESS said in a statement.
“These impacts will require a new generation of software to support fundamental changes in practice management,” the company said.
“IRESS considers this environment an opportunity to leverage its scale, experience and integrated technology suite to differentiate from existing providers and provide a compelling option to distribution networks.”
Walsh hinted the company had further plans to launch wealth management divisions elsewhere in the future.
“Not at the moment, [we’re] focusing on executing this one, but we’re always interested in opportunities,” he said.
