16 Mar 2010

Sharebroker shifts focus to financial advice

5:12 pm on 16 March 2010

Sharebroker McDouall Stuart Securities says it wants to drop its right to trade shares and concentrate on being a financial adviser to clients.

The company says the move has been prompted by planned changes to back office services in capital markets, which provide payment, clearing and settlement systems between firms.

It says the changes are likely to reduce the number of players and drive down the cost of back office services.

McDouall Stuart Securities has applied to become an NZX advisory firm, meaning it cannot trade but is allowed to advise clients, manage assets and raise money for them.

Managing director Andrew McDouall says some of the world's largest stockbrokers in the United States get others to manage their back office services, due to the cost.