Fidelity Investments recently announced the launch
of an integrated, single sign-on technology platform designed to help
independent RIA's simplify workflow and increase operational
efficiency. The platform is being developed on .NET, a Microsoft web
based technology. Fidelity expects the initial release of the platform
later this year, with an enhanced version to follow in early 2006.
Fidelity is currently the second largest provider of
custody services to RIA's. As of Feb. 28, 2005, they custodied $132
billion on behalf of 2,600 advisors. The new launch is part of
Fidelity's ambitious program to overtake Schwab Institutional as the
top custodian of independent RIA's. Fidelity Brokerage President Ellen
McColgan made it clear to advisors attending the firm's annual
conference in Palm Beach, Fla., that Fidelity was willing to continue
to take more steps to increase their market share.
According to Patrick Jancsy, Senior Vice President,
Fidelity Registered Advisor Group, the initial release will integrate
Integrated Decision System's (IDS) portfolio management and trading
tools, NaviPlan financial planning software from EISI, and Fidelity's
existing Advisor CHANNEL platform.
When the platform is fully built out some time in
2006, it will offer contact management, account servicing and practice
management support in addition to trading, portfolio
management/reporting and financial planning capabilities. No decision
has been reached yet with regard to CRM software partners. According to
Jancsy, Fidelity is currently conducting research to determine what
systems are being used by their RIA clients today. "Although no
decision has been reached, I would not be surprised if we aligned with
multiple third party CRM providers", he said.
On the account servicing side, Jancsy expects the
platform to eventually automate new account set-ups and asset transfers
into Fidelity from other custodians. He also expects to offer advisors
the ability to electronically more money between Fidelity and their
clients' accounts. So, for example, if a client required monthly cash
disbursements, the advisor could electronically move the money from the
client's Fidelity account to the client's checking account on the
appointed date.
Practice management support will include access to
third party providers from within the platform. For example Fidelity
already offers a business transition program, access to a third party
compliance provider, and discounts on a range of other services used by
RIA firms.
"Integrating industry leading technologies in a
single platform is going to significantly help advisors simplify
workflow and increase operational efficiencies" said Jancsy. "Fidelity
Advisor CHANNEL is not just about the capabilities it provides; it is
also about the way the capabilities are delivered. Having the
flexibility to access, manage, and act on information in a way that is
consistent with how they do business is critical to the independent
advisor".
For further information about Fidelity's services for advisors, visit http://ria.fidelity.com