HUB24 to close Xplore Wealth MDA services

Platform provider HUB24 has confirmed that it is closing the Xplore Wealth Managed Discretionary Account (MDA) services and intends to do so by 31 March.

HUB24 has used an update to the Australian Securities Exchange (ASX) to confirm the closure of the MDA service and said it had followed a review.

The company said it was currently engaging with financial advisers to explore alternative options including moving to the HUB24 platform.

It told the ASX that there is approximately $2 billion of funds under advice within Xplore Wealth MDA and the nature of the closure means there is potential for outflows.

However, it said the contribution of Xplore Wealth MDA to underlying EBITDA is immaterial.

HUB24 announced its acquisition of Xplore Wealth, previously known as Managed Accounts Holdings, in 2020.