Morgan Stanley moves client subset off legacy platform to Netwealth

Morgan Stanley Wealth Management will move a subset of its clients off its legacy platform onto Netwealth after an agreement was made with the ASX-listed platform provider.

Netwealth told the ASX that some of Morgan Stanley’s clients will have the option to transition their assets from Morgan Stanley’s legacy domestic platform to the Netwealth platform.

Morgan Stanley’s financial advisers will retain and manage client relationships on the Netwealth platform, which will be available alongside the firm’s proprietary global private wealth management platform.

The deal is an expansion of the relationship with Morgan Stanley’s wealth business in Australia, which manages more than $40 billion in assets under management (FUM).

Netwealth CEO and managing director Matt Heine said the agreement reflected a deliberate, multi-year investment the firm made to extend its product and platform capabilities in a highly scalable way.

“The investment has underpinned the continued development of our product offering, including the delivery of Netwealth Private and individual HIN [iHIN] capability, alongside a platform designed to deliver scale, digital enablement, and a high-quality client experience that supports our adviser clients and their growth,” Heine said.

Netwealth said the agreement represented a milestone for Netwealth’s expansion into the stockbroking and private wealth market, which they estimated has an addressable opportunity of approximately $600 billion in funds under administration (FUA).

Netwealth said the agreement includes access to a single technology, execution and administrative platform solution; access to a “curated” list of domestic investments, including ASX listed securities, managed accounts, managed funds, cash and term deposits; consolidated portfolio, performance and tax reporting; a branded mobile, web and reporting experience for advisers and clients; and integrated iHIN administration and flexible execution.

Over the next four years, Netwealth’s ambition is to double FUA on the platform.

Netwealth told shareholders on Tuesday that FY26 net flows are expected to be $15.4 billion, with the market volatility caused by the war in Iran “modestly” impacting the result, as well as the Australian government’s proposed tax changes.

The group reaffirmed its FY26 earnings before interest, taxes, depreciation, and amortisation (EBITDA) margin guidance of approximately 49 per cent, which excludes the $100 million for First Guardian investors, and investment in capitalised software of approximately $12 million.

Netwealth expects FUA net flows of $18 billion to $20 billion – an increase of 17 per cent to 30 per cent on FY26 – for FY27.

The platform provider further expects to operate with an EBITDA margin of 47 per cent, but has plans to achieve 50 per cent over the next four years.

Heine said the platform provider sees significant opportunity to grow further.

“We will continue to invest in a disciplined manner to capture these opportunities, supported by a clear pipeline of initiatives with attractive returns,” Heine said.

“We remain focused on balancing growth and profitability, maintaining our financial discipline as we scale, and are excited by what the future holds.”

The firm said the continued development of Netwealth Private and the introduction of iHIN capability have expanded Netwealth’s addressable market and are generating new growth opportunities beyond traditional advice channels.

The continued growth comes as Netwealth – along with peer HUB24 – surpassed $100 billion in assets under management in the past year.

The rise of Netwealth and HUB24 coincided with the aftermath of the Hayne royal commission as platforms independent of the major institutions, with newer technology and fewer legacy issues, came into vogue.

Advice consultancy Finura Group – which has a commercial relationship with HUB24 – has tipped both platforms will dominate the end-to-end advice process creating a “platform oligopoly” with at least one other industry rival.

Netwealth is the sixth largest platform ($124.4 billion in FUM) behind HUB24 ($127.9 billion in FUM) with both separately representing 10 per cent of the total platform market, according to Plan For Life Data recorded at the end of the 2025 calendar year.

Platform funds under administration
	Dec 2025	Market share	Dec 2024	YoY
Insignia Financial	$241.8 billion	18.3%	$225.4 billion	7.3%
Colonial First State	$168.6 billion	12.7%	$156.1 billion	8.1%
Macquarie Group	$164.4 billion	12.4%	$158.9 billion	3.5%
BT Financial Group	$152.8 billion	11.5%	$143.7 billion	6.3%
AMP Group	$149.4 billion	11.3%	$135.0 billion	10.6%
HUB24	$127.9 billion	9.7%	$98.9 billion	29.4%
Netwealth	$124.4 billion	9.4%	$100.9 billion	23.3%
Source: Plan For Life.

Netwealth will release its FY26 results on 26 August, which will cap off a year that saw the platform provider challenged by the Shield and First Guardian collapse.

Netwealth settled with ASIC to pay the 1000 First Guardian investors on its platform more than $100 million in compensation, following a similar agreement made by Macquarie and Shield investors, and has received increased prudential oversight from APRA.

The deal left Equity Trustees and Diversa Trustees to fight allegations of wrongdoing in court.

Netwealth announced at the time that the compensation will be recorded as an “extraordinary” expense in 1H26, impacting net profit after tax (NPAT) by approximately $71 million.