Fidelity Investments, the world's largest mutual fund company, and SunGard, a provider of software and processing solutions for financial service firms, yesterday announced an exclusive agreement to integrate Fidelity Registered Investment Advisor Group's brokerage services with the transaction processing of SunGard Transaction Network (STN).
Through the alliance, roughly 600 STN customers representing assets of more than $100 billion will have access to an enhanced set of services through a single source. The offering will also be made available to Fidelity's 170 bank trust and third party administrators (TPAs).
While the majority of RIAs will not feel an immediate impact from the deal, those who offer TPA services, as well as those who work with a TPA doing business with Fidelity and STN, should benefit. Longer term, the alliance may be felt indirectly by other Fidelity and SunGard customers because both firms will make a "substantial investment" in the integrated platform.