8/16/2023 0 Comments Folio institutional aum miminmum![]() ![]() That helps explain why Pershing Advisor Solutions is particularly popular among breakaway teams from wirehouses - larger, independent broker-dealer teams that value that kind of deep practice management support in pursuit of building and scaling their business. This stems in large part from the fact that CEO Mark Tibergien spent more than a decade leading the practice management consulting division of Moss Adams, and is still among the top experts on practice management and business strategy for growing RIAs. It’s not just oriented toward successful and profitable practices, but toward those holding hundreds of millions or even billions of dollars of AUM, that still want to grow a lot bigger. The big four: Pershing Advisor Solutions works primarily with larger RIAs that are specifically focused on growing a large business. In this context, there are some notable differences worth underlining among the top four RIA custodians. These are very small dollar amounts, but they add up after first couple hundred billion dollars of advisor assets.Ĭonsequently, most advisors don’t simply pick an RIA custodian by cost and basic capabilities (which aren’t that different), but more for a custodian’s particular focus or style. Some receive a small number of basis points for their role as transfer agent, or they make some very small spread on money market or other cash positions held by clients. Some participate in 12b-1 fees as part of their no-transaction-fee or NTF, platform. Most of these platforms earn whenever your clients trade: $5 or $7 per, or maybe via a small asset-based wrap fee. Rather, they just use their incredible size and scale to make what amounts to a very, very small scrape from a very, very large number of transactions. Indeed, none of the major RIA custodians even charge a platform fee or take a percentage of the advisor’s revenue (as a broker-dealer would). They can hold a wide range of standard investment assets. They all offer the core technology necessary to trade on behalf of clients. Yet despite their size and market reach, or perhaps because of it, all four provide substantively similar services. ![]()
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