Macquarie is closing its UK wrap platform and adviser support service Veracity.
Staff at the group were informed yesterday and a consultation has been launched to decide on any job losses, with the group saying they will receive “all of the support they require”.
Veracity provided a business transformation service for adviser firms to become RDR-compliant and was launched in October 2009 by John Baxter [pictured].
A Macquarie spokesperson says: “The Macquarie Banking and Financial Services Group has announced that, due to a combination of execution challenges and difficult business conditions, it does not see a long term future for its wrap platform in the UK, or for the Veracity business as part of Macquarie.
“Macquarie’s businesses are built on superior service and execution, which have been important factors in our success elsewhere in the world. Therefore not meeting these expectations within any business is not a satisfactory outcome.”
“We will spend the next few months supporting the small number of financial planners and clients who use the platform to facilitate a seamless transfer of investments to other providers.”
In July 2009 Macquarie took a 20 per cent stake in Paradigm Norton. Chief executive Barry Horner says he met with Macquarie yesterday and the group reassured that it would not be selling its stake.
Horner says: “We are disappointed on the wrap side, but on the investment side they are very supportive and there is no change to what they are doing.”