Pershing
“One of Pershing’s advantages is that we are a pure business-to-business firm with no retail conflict. Investment professionals who have been forming their own RIAs have been left with the choice of going to custodians who compete with them."
Jim Roth
Managing Director
Pershing LLC, a subsidiary of The Bank of New York Mellon Corporation
The investment landscape is changing, as more investment professionals establish independent Registered Investment Advisory (RIA) firms to deliver financial planning and investment advice for a fee. However, many of these investment professionals must also accommodate their existing commission-based business, which will allow them to continue to serve transaction-based accounts.
To address the needs of these investment professionals, broker-dealers have been attempting to blend the investment professional and RIA business models to create a harmonious, seamless approach to serving their investment professionals. Pershing's RIA Complete™ program was created to provide broker-dealers one platform for both fee- and commission-based assets. As a result, broker-dealers can now leverage RIA Complete to deliver a comprehensive commission and fee offering to more effectively serve those who are adding the advisory component to their business. Broker-dealers will now be in a better position to retain advisory assets that are currently being held away at competing custodians, access new sources of revenue, build a stronger wealth management offering, and continue to grow their business.
Investment professionals can leverage RIA Complete to influence the broker-dealers with whom they have established close, trusting relationships, while at the same time accessing technology, products, and practice management solutions specifically geared to their total business. Hybrid advisors have long been challenged by having to be on two competing platforms. Now combined, they can move to a more efficient operating model which will free them up more to focus on serving their investors.
Why You Need the ‘Complete’ Solution
In addition to better aligning the investment professional’s business with their clients’ needs, a fee driven fiduciary approach to serving clients are a means of improving investment professionals’ productivity and profitability. There are many arguments broker-dealers have traditionally used to not accommodate the increasing number of representatives adopting the independent RIA model including client perception, cost, burdensome management, and others. Yet one argument can no longer be the availability of one platform that serves all of the investment professional’s needs. Both the broker-dealer and investment professional can now adapt to a shifting market place in a way that is fulfilling to the investor while making good economic sense for the providers.
Jim Roth, Managing Director and head of Pershing’s RIA Complete initiative, notes “One of Pershing’s advantages is that we are a pure business-to-business firm with no retail conflict. Investment professionals who have been forming their own RIAs have been left with the choice of going to custodians who compete with them. With Pershing, broker-dealers can accommodate the change in the business model and give their investment professionals a bona fide choice without brand competition.”
Providing the Value Clients Demand—and Earning the Success You Deserve
Ultimately, though, RIA Complete allows investment professionals to provide their clients with the investment experience those clients have come to expect—and achieve the professional results the best investment professionals demand. “The uniqueness of RIA complete,” said Mr. Roth, “is that it recognizes the movement towards fiduciary advice and the desire for investment professionals to be advocates for their clients and puts broker-dealers in the position to more effectively accommodate this business model.”
To learn more about RIA Complete, please contact your home office.
