Iress reviews price hikes as investment banks fight back
The resolve of the financial tech provider appears to be softening as it faces opposition from brokers and prominent investment banks over a controversial bill.
Senior executives at Iress are reviewing their controversial decision to charge customers for an industry standard tech upgrade in the face of mounting opposition from large institutional brokers.
The ASX-listed $1.5 billion company held a high-level internal meeting on Wednesday to revisit its strategy of passing on the cost of a multi-million dollar tech upgrade to its own customers following a client backlash, sources with direct knowledge told Capital Brief.
Institutional brokers have joined the backlash with UBS, Morgan Stanley and Goldman Sachs also privately airing their frustrations, according to the sources.
All three institutions declined to comment.
The price hike gambit, which would save the company millions of dollars, has infuriated Australia’s financial services sector. The Stockbrokers and Investment Advisors Association, the peak body for retail brokers, told Capital Brief its members would not pay and argued there was “no legal basis” for the invoice.
