Pershing aims to check 'check-and-app'

Pershing aims to check 'check-and-app'
Custodian looking to eliminate mailing of checks to mutual funds, insurance companies; other tech rollouts in the works, too
AUG 24, 2012
By  DJAMIESON
Pershing has technology changes in the works that the firm says will allow its broker-dealer and RIA clients to aggregate accounts across custodians and track performance. The firm is also working on an automated process that it hopes will move broker-dealers away from the old-fashioned system of sending checks directly to mutual funds and insurance companies — a cumbersome process known as the "check-and-app" (application) system. First, though, the company in July will begin rolling out a new look to its investor-facing website. The upgraded NetExchangeClient platform will give end users more customization tools and self-help features, Pershing executives said last week during the firm's INSITE conference in Florida. "The biggest challenge is to get advisers to buy in," said Lucille Mayer, managing director in charge of the project. Giving investor clients more control is seen by some advisers and brokers as opening the door for clients to invest on their own. But clients clearly want more access, Pershing execs said. Meanwhile, two other projects are in testing phases. A new aggregation upgrade via Pershing's Albridge Solutions Inc. affiliate, promises to let advisers see and track what clients hold elsewhere. The new capability will also integrate across all of Pershing's managed account platforms, said Steven Dunlap, president of managed account solutions. And a new process to replace the check-and-app system is in the works. It will standardize forms and create a common document depository so that individual brokers can track their BD's approval progress and dealers can readily access records, said Marc Butler, managing director at Albridge. No broker-dealers want "to be in the check-and-app business," Mr. Dunlap said. The new system will incorporate a "carrot and stick" pricing plan to drive assets held directly with product sponsors to the Pershing brokerage platform, he said.

Latest News

SEC bars ex-broker who sold clients phony private equity fund
SEC bars ex-broker who sold clients phony private equity fund

Rajesh Markan earlier this year pleaded guilty to one count of criminal fraud related to his sale of fake investments to 10 clients totaling $2.9 million.

The key to attracting and retaining the next generation of advisors? Client-focused training
The key to attracting and retaining the next generation of advisors? Client-focused training

From building trust to steering through emotions and responding to client challenges, new advisors need human skills to shape the future of the advice industry.

Chuck Roberts, ex-star at Stifel, barred from the securities industry
Chuck Roberts, ex-star at Stifel, barred from the securities industry

"The outcome is correct, but it's disappointing that FINRA had ample opportunity to investigate the merits of clients' allegations in these claims, including the testimony in the three investor arbitrations with hearings," Jeff Erez, a plaintiff's attorney representing a large portion of the Stifel clients, said.

SEC to weigh ‘innovation exception’ tied to crypto, Atkins says
SEC to weigh ‘innovation exception’ tied to crypto, Atkins says

Chair also praised the passage of stablecoin legislation this week.

Brooklyn-based Maridea snaps up former LPL affiliate to expand in the Midwest
Brooklyn-based Maridea snaps up former LPL affiliate to expand in the Midwest

Maridea Wealth Management's deal in Chicago, Illinois is its first after securing a strategic investment in April.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.