Brightday is a direct-to-customer online wealth and superannuation offering, which YBR acquired in 2016.
However, given the financial services group’s new strategy to focus on mortgages (and step away from wealth management), YBR has now sold the Brightday business and related website and assets to Pearl Funds Management Pty Ltd.
The price received for the business is confidential. However, YBR said that the price – and the transaction – is immaterial to the YBR group.
YBR executive chairman Mark Bouris said: “The purpose of this announcement is merely to show that YBR is continuing to restructure and rationalise its wealth business.
“The contribution made by Brightday to the overall YBR group was miniscule, and it didn’t fit our strategy going forward, so it made sense for us to dispose of it to a more willing and committed buyer,” he said.
Earlier this year, Yellow Brick Road announced that it was to create a “much simpler business” by disposing of its head office wealth business functions and focusing on mortgages.
The company has since been disposing of, outsourcing, or otherwise restructuring the head office wealth business functions and recently revealed that it had entered into definitive legal documentation with an affiliate of global alternative asset manager Magnetar Capital (Magnetar) relating to the establishment of a joint venture designed to establish a mortgage-backed securities securitisation business.
[Related: YBR announces new joint venture]
Annie Kane is the editor of The Adviser and Mortgage Business.
As well as writing about the Australian broking industry, the mortgage market, financial regulation, fintechs and the wider lending landscape – Annie is also the host of the Elite Broker and In Focus podcasts and The Adviser Live webcasts.