Equity Trustees confirm exit from UK and Ireland
Equity Trustees has confirmed its intention to exit its UK and Ireland business and will write off $2.1 million associated with the investment.
In an ASX statement, the firm said it is “assessing its options” and will write off $2.1 million in goodwill and management rights associated with the investment. It would also incur costs associated with the exit including continuing to fund the operating losses until the exit is completed.
The firm launched in the UK in 2017 and subsequently into Ireland in 2019. Its services in the region focus on providing a range of fund services to international and domestic investment managers, distributors and financial services professionals who are looking to establish and operate funds in the UK and Europe.
The possibility of an exit had previously been reported in Money Management in June after the business said it was wary of the need for future investment and costs in the region.
Managing director, Mick O’Brien, said: “We are advanced in assessing options to determine the best exit from our investment, and we are in discussions with various parties to facilitate this process.
“The regulatory environment continues to intensify, structural changes are occurring in the market, and competition has increased significantly, leading to increased costs and pricing pressures that require continued investment.
“We intend to manage our exit in an orderly and considered manner for the benefit of all stakeholders, and we will liaise closely with market participants, clients, regulators and employees to keep them informed.”
Equity Trustees said the exit will allow it to focus on offering corporate trustee services in Australia, having recently merged its superannuation and corporate trustees into one combined business with $150 billion in funds under management.
There is “clear alignment” of the operating models, the firm said, which offers an opportunity to capitalise on the strengths of each business.
This is a busy year for Equity Trustees in its Australian business, having been announced as the super trustee of Future Super, which includes Verve Super, and Hejaz Group’s super and pension products.
It also has been appointed as the responsible entity for Blackwattle Investment Partners’ first range of Australian equity products.
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