Ever since CheckFree announced its purchase of
Integrated Decision systems (IDS) in early September, RIA's have been
anxiously awaiting word on the future of this ill fated Fidelity/IDS
venture. According to spokespersons at both firms, no decision has yet
been reached on the future of the IDS software, however, both sides
have committed to providing an answer to advisors within 30 to 60 days.
In a May 2004 press release Fidelity Investments
announced that it has established "a unique strategic relationship with
New York-based IDS to offer registered
investment advisors an institutional-level portfolio management and
order generation system." Fidelity was supposed to provide a single point of
contact for service and support for the IDS product, which is an integrated component of Fidelity's custody services.
"We realize the importance of this information to
advisors, and we are in constant communication with CheckFree to arrive
at a solution," said Pat Jancsy, senior vice president of Fidelity's RIA Group. It is
not yet clear whether the IDS solution will go forward. If it does not,
Fidelity could explore the viability of using other CheckFree solutions
such as APL and EPL.
Jancsy went on to say that RIA firms participating
in beta testing the IDS platform continued to maintain data on their
existing PMS systems, so disruptions at those firms have been minimal.
Alex Marasco, executive vice president and general
manager of CheckFree Investment Services, confirmed that his firm was
working closely with Fidelity to arrive at a solution. "The IDS
platform is not totally built out", he said. "We are still in the
process of evaluating IDS technology". Marasco suggested that going
forward with the IDS implementation is one possibility, but there might
be other, more cost effective options. He mentioned CheckFree's APL and
EPL products as possible alternatives.