The companies have combined assets in custody of $32.8 billion, the largest portion being the $20.8 billion administered by First Trust and its registered trade name, Retirement Accounts.
The company says the consolidation is the first stage of a three-stage plan to streamline product offerings and consolidate operations that is scheduled to be completed next year.
The operations of DATAlynx and TRUSTlynx, two other Fiserv subsidiaries, will not be impacted, the company says.
The merger will make Fiserv ISS one of the nation‚s largest trustees of self-directed retirement plans, with nearly 323,000 retirement and custodial accounts, according to the company.
"These trust companies have been part of the Fiserv family for a number of years but have operated individually," says Skip Schweiss, executive vice president of Fiserv ISS. "By consolidating the trust entities, we can strengthen our position and our identity in the marketplace. (Among) the four companies, there are 100 years of experience in providing quality trust, custodial and back-office services to the financial services industry."
NASD Fears Suitability Abuses On 529 Plans
The burgeoning 529 plan industry is coming under increased scrutiny by regulators.
While no one has yet stated that there are widespread problems with the college savings plans, investigators say there are "red flags" that raise questions about the suitability of some sales.
In the most recent development, the NASD issued its first "Investor Alert" regarding 529 sales. Such alerts are periodically issued by the regulatory organization in cases where there may be some confusion about an investment product. One recent alert, for example, focused on the sale of variable annuities.
The NASD also announced that it has expanded an examination sweep it began in the spring, increasing the number of brokerage firms being studied from six to 20. (The SEC, meanwhile, is also conducting an examination of the 529 industry.)
The NASD sweep thus far has found that about 90% of the 529 sales studied by the NASD have involved investors buying out-of-state plans, according to NASD spokesman Herb Perone.