UBS Backs Ethic Asset Management Platform: Tech Roundup

What You Need to Know

UBS made an unspecified investment in Ethic that was part of a $50 million Series C funding round by the fintech firm.
Hearsay will launch new functionality in early October to help advisors comply with the SEC’s modernized Marketing Rule.
Wealthtech management consulting firm F2 Strategy launched an Executives-in-Residence program.

UBS became the latest company to make an investment in Ethic, the developer of an asset management platform that enhances personalization for financial intermediaries.

The unspecified UBS investment was made through the wirehouse’s venture and innovation business, UBS Next, Ethic said Wednesday.

The UBS investment was part of a $50 million Series C funding round that Ethic said it closed on. The round was led by the Jordan Park Group and included UBS for the first time, according to Ethic. Also participating in the round were existing investors including Kapor Capital, Nyca Partners, Oak HC/FT, Sound Ventures and Urban Innovation Fund, Ethic said.

The new capital “will support Ethic’s ambitious growth plans, including expansion into new markets and products, and continued investments in its platform experience,” according to Ethic.

“Through UBS Next, we encourage technology-driven innovation and support ideas that have the power to shape the future of banking to meet clients’ evolving needs,” Mike Dargan, UBS group chief digital and information officer, said in a statement. “Through our investment in Ethic, we also aim to increase access to customizable, sustainable investment offerings to a much broader set of investors.”

Ethic, which noted it is also an RIA based in New York City, has grown quickly since its Series B raise in 2021, surpassing $2 billion in assets and expanding its team headcount by over 70%, it said.

Hearsay Adds Testimonial Support

Hearsay Systems announced Thursday it is expanding its compliance capabilities to help advisors and other financial professionals “make the most of testimonials and endorsements.”

The new functionality will launch in early October and was designed to assist advisors and firms in adhering to the SEC’s modernized Marketing Rule that goes into effect Nov. 4, according to Hearsay.

Under the Marketing Rule, endorsements and other testimonials written about advisors and shared publicly by the advisor via social media are treated as ads, Hearsay noted.

“This is significant because financial professionals are increasingly operating in a social world driven by likes, comments, and shares,” it said, adding: “Testimonials and endorsements are critical tools in an advisor’s marketing toolkit.”

F2 Strategy Expands Knowledge Base

Wealthtech management consulting firm F2 Strategy has launched an Executives-in-Residence program that it said Tuesday includes a team of industry experts and ex-wealthtech executives who will “further innovation for the industry at large.”

The participating professionals have “gained a great amount of experience in their careers and join F2 as they transition toward a new venture or as they are looking toward their next chapter upon retirement,” the firm said.

The first cohort includes: Koley Corte, senior strategy and marketing executive leader; Bharat Kumta, senior IT and product leader; Dave Malone, a business executive with 35 years of financial industry experience leading large teams through growth and rapid technology change and helping wealth management firms achieve their business goals; and Michael Zebrowski, a financial services and software executive.

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 eMoney chief operating officer.

The EIR program provides C-level executives with a “unique opportunity to network and drive change outside of the traditional corporate full-time role structure,” according to F2. In the program, participating professionals can “engage in cutting-edge client work, research, or mentorship, depending on their current career goals and passions,” it said.

“Experience is a key factor in driving technology transformation, so we developed our EIR program to attract the best and brightest minds to benefit both our clients and the wealthtech ecosystem as a whole including private equity firms, other consulting firms, companies looking to engage in mergers and acquisitions or performing an executive search,” according to Doug Fritz, F2 CEO and co-founder.