In custody battle, Pershing reaches landmark

Pershing Advisor Solutions last month quietly reached $100 billion in RIA assets under custody. That level is important, said PAS chief executive Mark Tibergien. “I think a lot of people were waiting to see if we got to $100 billion” as a marker to show if Pershing was serious about the RIA custody business, he said. Mr. Tibergien, who took charge of the custody unit of Pershing LLC four and a half years ago, was recently named to the operating committee of PAS' parent, The Bank of New York Mellon Corp. “That's another statement about the enterprise's commitment to the RIA market,” Mr. Tibergien said Wednesday as Pershing kicked off its annual meeting for correspondent and RIA firms in Hollywood, Fla. PAS is an integrated effort with BNY Mellon's advisory solutions unit, a bank custody service for RIAs and family offices. All told, Pershing's RIA custody business serves 340 firms. Pershing LLC also clears for 850 broker-dealers. The theme of the Florida conference is helping Pershing clients deal with enormous changes in the business and regulatory environment, James Crowley, Pershing's new chief relationship officer, said in an interview. Mr. Crowley took on the post last week as part of an effort to expand new services to clients. He is responsible for client relationships in the U.S. “Customers are looking for more collaboration” with Pershing, he said. “How do they digest all the technology, practice management and investment solutions, and bring that into their practices?” “The industry is going through profound change,” Mr. Tibergien added. “We don't know where it will all fall out, but it will look different.” The financial crisis has taken attention away from long-term strategizing, Mr. Tibergien said. “Everyone has their head down, and butt up. They haven't been looking over the horizon.” Pershing and its clients face a “really difficult operating environment,” Mr. Crowley said, although the company continues to grow by acquisition and is doing well. Pershing's results are not broken out from BNY Mellon.