Networking: Pershing plumps up trust lineup

Networking: Pershing plumps up trust lineup
SEP 20, 2012
Pershing LLC has added two independent trust companies to its existing network of outside providers. BOK Financial of Tulsa, Okla., and Rapid City, S.D.-based Independent Trust Company of America have joined Pershing's Trust Network referral program, which gives Pershing's broker-dealer correspondents and RIA firms access to independent trust services. The new additions join six existing members on the Pershing Trust Network: The Advisory Trust Company of Delaware, Comerica Bank & Trust NA, New York Private Trust Company, Reliance Trust Company of Delaware, Santa Fe Trust and Wilmington Trust Company. "Because trusts are among the most important wealth management tools, it remains crucial that advisors continue to have the flexibility to offer the trust administration that is specific to client requirements," said Tom Sholes, head of product management and development for Pershing, in a statement earlier this week. Separately this week, National Advisors Trust Company said it expected to have a service available in the fourth quarter for advisers with Schwab Advisor Services. The new service will allow advisers at Schwab to use National Advisors Trust as a trustee while keeping assets at Schwab. There was some initial confusion about the Schwab arrangement after a Schwab spokeswoman said the company was only in early talks with National Advisors Trust. Ron Ferguson, chief executive of the trust company, said the new service was not part of a formal referral program, but a technology capability that allows National Advisors Trust to download portfolio data from Schwab, and use it to administer trust accounts. "We're talking to Schwab about some [other] things," he added. National Advisors Trust has offered the download service to advisers at Fidelity Institutional Wealth Services and TD Ameritrade Institutional for about six months, he said. The adviser-owned company, a big player in the space with more than $7.5 billion in assets under administration, has historically required advisers to custody trust assets at National Advisors Trust, but its new service lets advisers keep trust assets at their current custodian. Fidelity and Schwab both have in-house trust operations in addition to making referrals to outside trust providers. Schwab offers trustee services through the Charles Schwab Bank, and Fidelity through its Fidelity Personal Trust Co. Adviser demand for independent trust services has been growing as advisers seek to retain the assets of their aging, wealthier families. Stricter custody rules following the Bernard Madoff scandal have also caused advisers to avoid being trustees themselves. Instead, they're switching to corporate trustee services from independent providers who allow the adviser to remain in charge of managing clients' assets.

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