Wealth tech FNZ has launched a new wealth management business in the US in collaboration with State Street.
The development follows FNZ’s purchase of a majority stake in State Street’s Wealth Manager Services (WMS) business in the US.
Following receipt of the necessary regulatory approvals this month, FNZ Trust Company is now operating the WMS business, in which State Street maintains a minority holding.
This new business combines State Street’s custody capabilities with FNZ’s international platform. It will service nearly 8,000 wealth management and financial advice firms across Europe, the UK and Asia-Pacific.
State Street will serve as sub-custodian with regard to all custody assets of the clients that have transitioned to the new firm.
WMS senior vice-president Lee Jones will assume the role of chief executive of the new business. A team of around 100 employees from State Street will join the FNZ Trust Company along with Jones.
Jones said: “This is a really exciting move for everyone involved, but most importantly for the wealth management and financial advice firms we will serve.
“They and their clients stand to benefit from the considerable investments we are making – both in terms of our technology and our people – to fulfil our strategy and the ambitions for significant growth over the coming years.”
In November last year, the UK’s Competition and Markets Authority (CMA) blocked the merger of FNZ and GBST, saying that the deal could erode the quality of service and lead to higher prices.
The company agreed to buy Australia-based GBST in July 2019.