Pershing Advisor Solutions is up and running with a dual custody platform that lets clients hold assets at the Pershing LLC broker-dealer, or the parent bank, BNY Mellon.
 
“We now have about 132 advisory clients using that solution,” said Mark Tibergien, chief executive officer of Pershing Advisor Solutions (PAS).
 
Bank custody appeals to some high-net worth individuals who may use both the B-D and the bank. Some prefer a bank custodian for trusts, foundations, “or a perception of safety that comes with a bank,” Tibergien said. Pershing also wants to attract private trust companies with the service.
 
Integrating an older existing bank custody unit with the larger PAS has taken the better part of three years. The project was completed at the beginning of this year. Clients communicate with one service team and now use a single technology platform.
 
“We’re actively adding clients onto it,” said Tibergien, who spoke with Financial Advisor magazine at Pershing’s annual Insite conference in San Diego.
 
The dual custody option is in addition to the financing services Pershing clients have had for some time via BNY Mellon’s private banking services.
 
Tibergien says the integration of custody options should continue to attract larger RIA firms. “It’s unique, because none of the other custodians offer both [custody options] and none offer private banking,” he said, unlike the wirehouse firms where many of the top RIA breakaways originate, and where they’ve relied on access to banking services.
 
PAS serves 550 RIAs and custodies about $200 billion. Tibergien says the average client size is $350 million, the largest of his competitors.
 
Separately this month, Pershing launched an insurance solutions unit for wealthy clients, made up of a network of outside insurance professionals. Advisors and clients in all the firm’s channels can access customized health, life and disability insurance through coordinators who are part of BNY Mellon, said Kathryn Swain, Pershing’s director of financial solutions.
 
For the wealthy, “it’s really about protecting against some kind of catastrophe,” Tibergien said of the new insurance offering. “They don’t want to eat up their net worth in surprises.”
 
PAS continues to garner about half its RIA recruits from brokerage firms, and half from other RIA custodians.
 
“The best we can tell, the breakaway movement is not really stopping,” Tibergien said.
 
“With what’s happening in the wirehouses, where the upfront payments [are being cut], that’s kind of an accelerant,” he said. “My guess is, firms realize they can’t build relationships if they’re paying for love.”