Netwealth is in talks with a broker business for its compliance arm Pathway, as the platform moves to focus on technology and the independent and non-aligned space.
Speaking to ifa, netwealth joint managing director Matt Heine said the company has decided to seek a buyer for Pathway Licensee Services, as it “no longer meets long term objectives and strategy of the netwealth group”.
The move follows a “strategic review of the business”, which found netwealth should focus instead on developing adviser technology solutions, and not on providing licensing and compliance services.
Netwealth’s other managing director Michael Heine told ifa there are about four industry players who may be interested in buying Pathway.
“It is early days, but we do have a broker business that we are in discussions with and we will have the feedback over the next week or so,” he said.
“We wanted to approach three or four key players that we thought would be good for our clients and that we think would be appropriate.
“It’s been a positive reaction, but it is early days.”
Meanwhile, the role of head of governance and advice, held by Phil Anderson, will be made redundant as part of the restructure, Matt Heine said.
Mr Anderson, former AFA chief operating officer, joined netwealth in September 2015.
As for the other Pathway staff members, Michael Heine said, “We are seeking to retain the other Pathway staff members for some time while we're in the process of the sale.
“Many of the staff have been reallocated to other roles and many of them will hopefully be offered positions by the prospective purchaser.”
Michael Heine added that despite the changes, netwealth continues to be committed to the independent and non-aligned sector.
“We’ll still be running personal development days, we’ll still be doing training and education,” he said.
“We are totally committed to the non-aligned space – that's our space and that's the space we see growing very rapidly as institutional advisers seek new homes.”
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