FNZ launches US wealth management venture

Apr 8, 2021 Hubbis

FNZ and State Street are collaborating on FNZ Trust Company, a new wealth manager servicing venture, with a majority stake acquired by FNZ in State Street’s Wealth Manager Services business and a minority interest retained by State Street.

In 2020, FNZ agreed to acquire a majority stake in State Street’s Wealth Manager Services (WMS) business in the US. Following receipt of the necessary regulatory approvals, the acquisition closed on April 1, 2021 and FNZ Trust Company is now operating the WMS business.

FNZ Trust Company combines the custody expertise of State Street, which retains a minority interest in the business, with FNZ’s global wealth management platform, which today services approximately 8,000 wealth management and financial advice firms across Europe, UK and Asia-Pacific. State Street will serve as sub-custodian in respect of all custody assets of the clients that have transitioned to the new firm.

Lee Jones, who was responsible for WMS as a Senior Vice President within State Street, takes up the role of Chief Executive for FNZ Trust Company. He is joined by approximately 100 colleagues who have moved with him from State Street.

Jones commented: “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. We look forward to continuing to work closely with all our clients, as a strategic partner in supporting their business in the future."