The company has been described as the “Amazon of financial services” due to its disruption of traditional players on Wall Street and in financial services markets around the globe.
Observers had speculated that its second attempt at cracking the APRA-regulated superannuation market would spell trouble for industry super funds and trading platforms.
However, critics pointed to potential conflicts of interest as Vanguard announced plans to obtain a super licence while also managing money for competitors. Its ties to self-managed super fund lobbyists have also been questioned.
A Vanguard Australia spokesman confirmed the business lines would be shut after 20 years as it pivots to focus entirely on servicing individual investors, super members and financial advisers, not rival institutions.
“This is an ambitious plan and it requires us to focus our long-term efforts on opportunities that enable us to better serve direct investors and their advisers,” the spokesman said.
“Vanguard will continue to offer pooled fund solutions to institutional clients and will work closely with our existing institutional SMA clients to ensure a smooth transition program is put in place and find the best possible solution to their existing mandates.”
More to come