Speaking on Today with Sean O'Rourke, Wallace says sacking the pair was probably inevitable, but that the statement was too vague from the IRFU as to how they came to their decision.
"They have done a lot for Ulster and Irish Rugby".
Both Jackson and Olding were unanimously acquitted of rape charges at Belfast Crown Court but had their contracts revoked by the IRFU in the aftermath, with the union saying it arrived at the decision by acknowledging its 'responsibility and commitment to the core values of the game: Respect, Inclusivity and Integrity'.
Ulster Rugby's CEO says he can not see Paddy Jackson or Stuart Olding returning to play with the province or country in the future.
As for the rugby authorities, the fact that there will now be a review within the game in Ireland to ensure core values are understood, supported and practised at every level, must be regarded as a welcome first step.
"The decision itself was probably a decision that had to be made, given the public pressure that was mounting and also the sponsorship issue", Wallace said. "It's not something that we've discussed in the office", Hunter told the club's official website after his side's 45-5 victory over London Irish at the Madejski Stadium on Sunday.
"I think that is the core issue here and that is why they are moving on".
"I think it's an opportunity to Ulster Rugby to rebuild itself as a brand after the last couple of months", he said.
He added: "By their (Jackson and Olding) own admission, their behaviours fell very far short of what is expected of a role model, of a professional player in Ulster and Ireland".
"Also for the players themselves to move on and start again because Belfast and Ulster is a goldfish bowl". So it's probably best on both counts that they go elsewhere to ply their trade.
"I think time is a healer and if that day comes around hopefully it will be down the track", he said.