Pershing aims to check 'check-and-app'

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.