Empire Life has acquired an interest in EXOS Wealth Systems (EXOS), making the insurer a minority shareholder of the trading platform. EXOS is one of the group companies operating under the Monarch Wealth brand.
EXOS provides mutual funds and guaranteed investment certificates in the Canadian marketplace through a network of independent advisors. It says it provides tools that let advisors offer their clients customizable investment solutions.
“This investment further demonstrates Empire Life's commitment to independent financial advice for Canadians,” says Mark Sylvia, President and CEO of Empire Life.
Mark Rogers, Senior Vice President, Corporate Development at Empire Life, told Insurance Portal that EXOS' most important aspect is its management team, because it is "respected in the industry.” “Empire Life is committed to supporting independent distribution and has made a minority investment in a business that has strong potential for profitable growth,” he says.
Quest for independence
Mark Sylvia adds that the insurer is joining the EXOS board. “The EXOS group of companies shares that commitment and is recognized for its growth and technology leadership in the industry.”
EXOS Chair and CEO Richard Pyper believes that as a shareholder, Empire Life will support the company's technology-led growth strategy. “We approached Empire Life because of their demonstrated commitment to independent advice, their long-term vision and their track record,” he says.
Broker-affiliated
The EXOS group owns several Monarch Wealth branded entities: Monarch Wealth Corporation, a mutual fund dealer based in Mississauga, Ontario; Monarch Wealth Deposit Group, a GIC brokerage; and Monarch Wealth Assurance Agency, an insurance brokerage firm.
Richard Pyper told Insurance Portal that Empire Life has no direct involvement with the “Monarch companies” other than EXOS. Monarch has a network of advisors across Canada, including Quebec, he continues.
Access to institutional funds
The EXOS CEO also provided more details about the tools his platform offers. “EXOS has developed a unique trading platform for mutual funds that provides a seamless experience for advisors and includes email integration, calendar, customer relationship management, analytics, video conferencing, live chat, and automated workflows,” he points out.
This technology allows for the purchase of units of individual institutional class funds. It also lets funds be repackaged into model portfolios overseen by third-party portfolio managers.
Help buying books of business
As a result of this investment by Empire Life, EXOS is immediately launching a lending program to assist advisors in acquiring books of business, Pyper says.
This Empire Life program “is already broadly available to independent advisors who require financing to acquire books of business. The program will be extended to Monarch Wealth advisors,” Rogers explained to Insurance Portal.
