Wealth management software firm WealthO2 has appointed Macquarie Wrap founder Neil Roderick as its chair, and HUB24 and COIN founder Darren Pettiona as an executive director.
Roderick worked for Macquarie Bank for 14 years, retiring in 2013 as chief operating officer of the banking and financial services group.
He founded Macquarie Wrap, the Professional Series, and retail life insurance business, as well as leading the Cash Management Trust.
“Its impressive to see how WealthO2 is using the latest technology and some smart thinking to work with advisers to develop a new generation of platform, particularly in the managed accounts space,” Roderick said.
“This approach enables it to respond and develop quickly, and to operate at a lower cost with fewer staff than other models.”
This brings commensurate benefits to advisers and their clients, which WealthO2’s simplified and transparent fee structure demonstrates.
Pettiona said in 2007 the benefits of managed accounts were not as well understood by advisers as today.
“It is technology innovation that can lead change in an industry; with the decoupling of the big four banks from wealth the time is perfect for technological innovation to flourish,” Pettiona said.
“The financial services industry now has an opportunity to reset itself without the barriers to entry or interference that existed with the legacy industry vertical models.
“It would be a wasted opportunity to see these old models replicated on new technology masquerading as innovation.”
WealthO2 chief executive and co-founder Shannon Bernasconi said the appointments of Roderick and Pettiona brought depth of experience to the WealthO2 business.
“The appointment of these two financial services stalwarts’ to the WealthO2 board, comes as WealthO2’s assets under management hit the $2.3 billion mark – a size that has been reached in less than 4.5 years,” Bernasconi said.
“January 2021 also brings an end to grandfathering of conflicted renumeration – which is worth up to $2 billion to the industry.
“Dealer groups and advisers who have benefited from this revenue to date have in the most part now moved clients to a new fee for service model, or they have taken a hit to their profit and loss.”