Platform provider HUB24 has pulled the trigger on the option to acquire HTFS Nominees, bringing the trustee service in-house.
HTFS Nominees is owned by EQT Holdings, which also owns the troubled Equity Trustees which is being sued by ASIC over due diligence failures for onboarding the Shield and First Guardian master funds.
HUB24 had announced in January that it would transition the role of the trustee for the HUB24 Super Fund into the broader group and it told the market on Tuesday morning that due diligence has been completed.
HUB24 didn’t reveal the cost, instead telling investors the price was “nominal” and that the transition was not expected to have a material financial impact on profit in FY27 or beyond.
However, the acquisition is still subject to approval from APRA, which is expected to be completed by the end of the year.
HTFS will continue to provide trustee services to the HUB24 Super Fund until the transition is complete.
“HUB24 is well-positioned to continue to support the best interests of HUB24 Super members and will collaborate with EQT throughout the transition period to fulfill ongoing regulatory obligations and adhere to best practice governance principles,” the group told investors.
When HTFS Nominees was appointed as trustee for HUB24’s super fund, an agreement was made which would allow HUB24 to acquire the trustee entity at some point in the future.
The deal comes as EQT Holdings looks to divest its trustee-for-hire business in the aftermath of the Shield and First Guardian collapse.
The company denies any wrongdoing and says that the trustee had no relationship with the advisers, licensees, lead generators, responsible entities, fund managers or property developers accused of wrongdoing in relation to the distribution of the funds.
EQT Holdings managing director Mick O’Brien told shareholders last year the trustee instigated its process for listing the funds at the request of the platform operators.
Equity Trustees was the trustee for DASH’s Super Simplifier which hosted Shield, and NQ Super which hosted both funds.
But while both Shield and First Guardian passed Equity Trustees’ due diligence process, the company argued it was also a victim of fraud.
“In particular, we believe that the biggest single source of failure were the responsible entities of the two managed investment schemes,” O’Brien told investors last year.
“The responsible entities were closely followed by the fund managers of the schemes, the lead generators, the financial advisers and the licensed dealer groups that authorised the financial advisers.”
HUB24 chief executive Andrew Alcock told Professional Planner last year that the platform declined to host the funds as they did not pass the due diligence process.
HUB24, and other major platforms, later blacklisted InterPrac Financial Planning advisers. The licensee, which is in the processes of being offloaded for $50,000, was being sued by ASIC for due diligence failures of advisers central to the investigation into the collapse.
The acquisition comes as the government considers banning the trustee-for-hire model despite support from ASIC chair Joe Longo who said last year the business model could survive the scandal.
Option 1.4 of the ‘Enhancing member protections in the superannuation system’ consultation will consider restricting certain trustee business models, including the outsourced model used by Equity Trustees and Diversa Trustees.
“While trustees remain accountable for member outcomes, having an external trustee function can, in practice, increase the operational separation between the trustee and key elements of the platform’s day-to-day activities, including the design, distribution and ongoing oversight of the platform’s investment menu,” the consultation paper said.
“Stakeholders have suggested that, in some circumstances, this separation may weaken the effectiveness of governance and oversight.”
HUB24 platform funds under administration was $127.8 billion as at 31 March 2026, with net inflows offset by negative market movements of $4.1 billion in the past quarter.
The first quarter of the calendar year saw 37 new licensee agreements signed with the total number of advisers using the platform increasing by 272 to 5549.
