Custodial platform for Stewart Group

Stewart Financial Group director Nick Stewart says a $700,000 IT platform will better safeguard clients' money.

Wealth management company Stewart Financial Group has invested in a $700,000 IT platform to better safeguard clients' money.

Director Nick Stewart said the independent custodial platform had launched, offering clients greater automation, security and transparency.

"We decided to paddle our own waka and be in control of our own custodial wrap platform," he said.

"During my tour of the US last year I saw how automation and technology were driving their businesses, and that validated the decision to move to our own next-generation platform."

It was global best practice for there to be a firewall between a client's capital and adviser, he said.

A custodial platform fulfils this role, from both a security and administration point of view. Stewart Group partnered with FNZ who have built custodial platforms globally to the tune of $220 billion across 6 countries.

"Our bespoke custodial platform, handles all cash, script and units, and also enables economies of scale so our clients get a better deal through sharper pricing on brokerage, call account interest rates and underlying FOREX margins."

It has daily data feeds to Stewart Group's client relationship management system, for all cash, asset transactions made and pending.

Mr Stewart said so far only very large institutions had a similar system "and we are the only family-owned non-aligned platform in New Zealand".

Tim Rowe, former Global ICT Manager of 16 years at New Zealand-born multinational Compaq Sorting Equipment, has been secured as Platform Manager bringing extensive global IT and platform experience.

In 2015 Stewart Group launched Boutique Advisers Alliance, an advisory service for fee-only independent financial advisers. Together they currently manage $395 million.

It has a staff of 18 at its Hastings office, expected to grow to 25 specialised roles in the next 12 to 18 months.