What do you want to know
- UBS made an unspecified investment in Ethic which was part of a $50m Series C funding round by the fintech company.
- Hearsay will launch a new feature in early October to help advisers comply with the SEC’s Modernized Marketing Rule.
- Wealth management consultancy F2 Strategy has launched an Executives-in-Residence program.
UBS has become the latest company to invest in Ethic, the developer of an asset management platform that improves personalization for financial intermediaries.
UBS’s unspecified investment was made through the wiring house’s venture capital and innovation business, UBS Next, Ethic said Wednesday.
UBS’s investment was part of a $50 million Series C funding round that Ethic said it closed. The round was led by the Jordan Park Group and included UBS for the first time, according to Ethic. Existing investors including Kapor Capital, Nyca Partners, Oak HC/FT, Sound Ventures and Urban Innovation Fund also participated in the round, Ethic said.
The new capital “will support Ethic’s ambitious growth plans, including expansion into new markets and products, and continued investment in its platform experience,” according to Ethic.
“Through UBS Next, we are driving technology-driven innovation and supporting ideas that have the power to shape the future of banking to meet changing client needs,” said Mike Dargan, Chief Digital and information from the UBS group, in a press release. “Through our investment in Ethic, we also aim to increase access to customizable and sustainable investment offerings to a much wider set of investors.”
Ethic, which noted it is also a New York-based RIA, has grown rapidly since its Series B raise in 2021, surpassing $2 billion in assets and growing its headcount. team by more than 70%, he said.
Hearsay Adds Testimonial Support
Hearsay Systems announced Thursday that it is expanding its compliance capabilities to help advisors and other financial professionals “get the most out of testimonials and endorsements.”
The new feature will launch in early October and was designed to help advisers and firms adhere to the SEC’s modernized marketing rule which goes into effect Nov. 4, according to Hearsay.
Under the marketing rule, endorsements and other testimonials written about advisers and shared publicly by the adviser via social media are treated as advertisements, Hearsay noted.
“This is important as finance professionals increasingly operate in a social world driven by likes, comments and shares,” he said, adding, “Testimonials and endorsements are essential tools in an advisor’s marketing toolbox.”
The F2 strategy expands the knowledge base
Wealth management consultancy F2 Strategy has launched an Executive-in-Residence program which it says Tuesday includes a team of industry experts and former wealth technology leaders who will “pursue innovation for the industry as a whole”.
Participating professionals have “gained great experience in their careers and join F2 as they move into a new venture or as they consider their next chapter in retirement,” the company said.
The first cohort includes: Koley Corte, senior manager of strategy and marketing; Bharat Kumta, Senior IT and Product Manager; Dave Malone, a business executive with 35 years of experience in the financial industry, leading large teams through rapid growth and technological change and helping wealth management companies achieve their business goals; and Michael Zebrowski, director of financial services and software.
Malone was vice president of business initiatives at RBC Wealth Management Canada, while Zebrowski was founder and CEO of Advisor Innovation Labs, which was acquired by Envestnet, and is a former chief operating officer of eMoney.
The EIR program offers C-level executives a “unique opportunity to network and drive change outside of the traditional full-time corporate role structure,” according to F2. In the program, participating professionals can “engage in cutting-edge client work, research or mentorship, depending on their career goals and current passions,” he said.
“Experience is a key factor in technology transformation, so we have developed our EIR program to attract the best and brightest minds for the benefit of both our customers and the management technology ecosystem. portfolio as a whole, including private equity firms, other advisory firms, companies looking to engage in mergers and acquisitions or conduct executive search,” according to Doug Fritz, CEO and Co-Founder of F2.