A listed diversified financial services company has awarded HUB24 a $1 billion mandate, as it moves away from its own wrap platform.
ClearView will migrate the $1 billion from its own WealthSolutions wrap platform to HUB24, subject to all regulatory requirements.
ClearView will not be closing the wrap platform, and its products will remain with the firm, a spokesperson confirmed.
"We are not closing WealthSolutions. We are moving it from being a fully-outsourced CV-issued platform across to HUB24 as the issuer and the platform, subject to the necessary approvals and regulatory requirements," she said.
"Our aim is to deliver a modern wrap technology platform for our customers and members, and provide increased opportunity to deliver ClearView's products to market."
ClearView's primary superannuation life insurance portfolio will also be transferred to the HUB24 Super Fund. The portfolio will continue to be administered by ClearView.
With the new partnership, ClearView hopes to launch investment and insurance products initiatives in the future, including a ClearView-branded version of HUB24's retail solutions, HUB24 Invest and HUB24 Super, and the addition of the firm's managed portfolios and flagship life insurance product, LifeSolutions, to HUB24 Invest and HUB24 Super.
"The partnership is expected to deliver on ClearView's previously advised project to seek a modern replacement solution for its wrap technology, substantially address the tax credit issue in the ClearView Retirement Plan and deliver competitive new products in the future," the firm said.
The development, transition and implementation of the migration will cost ClearView $4-6 million. This will be incurred over the next 6-12 months.
ClearView managing director Simon Swanson said the move would help simplify the business and offer a differentiated solution to advisers.
"This is an exciting strategic partnership for ClearView," he said.
"We are committed to delivering a high-quality, differentiated wrap-based offer to advisers and clients, with a focus on adviser efficiency, offering choice and value for money.
"Importantly, it is expected to substantially address the tax credit issue for the ClearView Retirement Plan and foster business simplification as we continue growing our life insurance and wealth management business."