Financial Services

Oz financial advice player wins SEC approval ahead of US operations

Wed 15 Jun 22, 1:15pm (AEST)
US 9 Wall Street
Source: iStock

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Key Points

  • Equity Story is now registered as an Investment Adviser Firm in the US after SEC approval
  • Company now legally allowed to provide financial advice in the US to US residents
  • EQS to establish US operations later this year with commencement early 2023

Australian financial advisory provider Equity Story Group (ASX:EQS) has seen its share price jump over 3% in morning trades as the company flags its receipt of financial advisory approvals from US regulator SEC. 

Equity Story is now legally recognised as an Investment Adviser Firm in the US, giving it the same permissions as an Australian Financial Services Licence (AFSL). 

The regulatory greenlight precedes the establishment of Equity Group’s US operations in the second half of this year with commercial operations to begin in early 2023. 

This reflects Equity Story’s maiden entrance into the US market. 

(Source: Gallup Personal Finance Survey 2022) Despite current pessimism, Gallup found self-reports of "comfortable" conditions stable
(Source: Gallup Personal Finance Survey 2022) Despite current pessimism, Gallup found self-reports of "comfortable" conditions stable

Sydney HQ to manage US operations 

The company is currently in the process of recruiting US equity market commentators to add to the Equity Story analytical team. 

The new overseas staffers will begin by producing daily podcasts, the company notes, with operations in the US to be managed from company HQ in Sydney, Australia. 

Marketing in the US will be conducted through local firms while US-made financial advisory content will also be made available to Australian investors.

In effect, this will allow Equity Story to begin offering advice on both the ASX and the NASDAQ, S&P 500, and Dow Jones. 

US trading participation rising 

Equity Story highlights recent Gallup Poll research which suggests retail participation in equity market trading has increased in the US since the start of covid. 

Gallup’s 2022 Economy and Personal Finance survey found 58% of American respondents reported ownership of stock. 

In the same 2020 survey, that figure was at 55%; in 2021, it was at 56%, suggesting an acceleration of participation in the last twelve months. 

This translates into some 144m US citizens, Equity Story notes, over 20 times the size of the Australian market. 

Equity Story's chart performance over the last three months reflects larger sell-off trends hitting fintech
Equity Story's chart performance over the last three months reflects larger sell-off trends hitting fintech
Equity Story Group was a Market Index client at the time of publishing. All coverage contains factual information only and should not be interpreted as opinion of financial advice.

 

Written By

Jonathon Davidson

Finance Writer

Jonathon is a journalism graduate and avid market watcher with exposure to governance, NGO and mining environments. He was most recently hired as an oil and gas specialist for a trade publication. Email Jon at [email protected].

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