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RIA Custodians

Asset custodians are the central players in the RIA business and choosing one is the biggest decision most financial advisors will make to build their business. As the place where RIAs park their assets (the same way a captive broker would park assets at Merrill Lynch or UBS), custodians serve hundreds or thousands of these registered investment advisors and make big investments in technology and service on their clients' behalf.

This section features a series of articles under the “Asset Custody Project” label that cover these companies in a way that keeps advisors abreast of their progress – both with journalistic commentary and a common set of data so that advisors can easily compare them. The articles look at the strengths, weaknesses and niche capabilities of these companies.

— Brooke Southall

Here are links to the profiles of custodians:

  • Equity Advisor Solutions
  • Apex Clearing
  • Raymond James
  • State Street
  • Ceros Financial
  • Fidelity
  • Pershing
  • Royal Bank of Canada
  • Scottrade
  • Schwab
  • TD Ameritrade
  • Trade-PMR
  • Trust Company of America
  • BNY Mellon
  • Folio Institutional
  • Shareholders Service Group
  • National Advisors Trust
  • US Bank
  • If you want a more chronological look at news about the custodians, just scroll down.

    Mike Durbin didn't know he'd end up as the eMoney CEO when he agreed to oversee its onboarding.

    Mike Durbin takes new RIA+ job at Fidelity after an unlooked-for two-year eMoney mission concludes

    After Abby Johnson had former RIA chief troubleshoot $250-million purchase, he comes back to stock shelves with robo and alt goodies

    December 8, 2016 — 12:08 AM UTC by Brooke Southall

    Brooke's Note: "Product" is almost a dirty word in the RIA business. It connotes something inert and laden with fees. Not a pretty picture. But products in the financial services realm are evolving and Fidelity suggests that is a reason why Mike Durbin ended up ...

    Craig Gordon: I have seen significant advancements and a huge commitment by RBC.

    Once RBC's RIA face, Craig Gordon returns to the Minneapolis-based custodian psyched about City National purchase and NextCapital deal

    Gordon is betting his career on the premise that RBC has gotten its act together in the two years he was away

    November 28, 2016 — 8:58 PM UTC by Sarah O’Brien

    Brooke's Note: RBC has gone hot and cold on RIA custody business. Its interest seemed to reach a zenith in 2010 when it bought the old RIA custody unit of Bear Stearns from J.P. Morgan. Royal Bank of Canada is hustling to become an ...

    If Ron Carson were to leave LPL, it would be in keeping with his talk about being the disrupter rather than the disruptee.

    Almost-confirmed reports had Ron Carson bolting LPL for Cetera as part of a $35-million shake-up of his RIA; 92 hours later the silence is deafening

    The $2.6-billion AUM defection by the LPL rep icon was widely reported, tacitly confirmed, then unconfirmed and remains in a cone of silence

    November 21, 2016 — 11:56 PM UTC by Janice Kirkel

    Brooke's Note: It is not unusual for stories to be leaked to those of us who cover the RIA and IBD beats. Typically, however, the tipster chooses one publication to bestow his or her inside information upon. In this case, however, the leaking was widespread. A whole ...

    Citi's Bill Katz spoke out Thursday to quell rumors about Schwab buying LPL, but only with soft logic.

    Why the LPL-Schwab merger rumor making the rounds makes more sense the harder you look

    The Boston- and San Francisco-based companies each lead independent channels and redundancies are scarce

    November 18, 2016 — 1:15 AM UTC by Brooke Southall

    LPL Financial's shares leapt higher yet again Thursday to finish above $40, up from about $31 as recently as Nov. 3.

    This time, it had Chuck to thank.

    The Charles Schwab Corp. is the latest company rumored to be in the mix as a buyer ...

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    Walt Bettinger (with Bernie Clark): It’s fairly safe to say that most of the rest are available for the right check.

    As Bernie Clark and Walt Bettinger go on offense, LPL and Wells Fargo names get named and a B2C robo dry-up gets foretold at Schwab IMPACT in San Diego

    The Schwab CEO, buoyed by his robo, robust quarterly results and DOL fallout at competitors is on offense -- a state of being RIAs can relate to

    October 28, 2016 — 6:41 PM UTC by Guest Columnist Tim Welsh

    Brooke's Note: If you are Schwab Advisor Services, you are a giant e-commerce website backed by good call centers. In good years, your website brings in about half the bottom-line profits for The Charles Schwab Corp. But once a year you are zapped out of virtual ...

    Brian Hamburger: None of the new rules, even the proposed ones, will be crippling to your business.

    Brian Hamburger plays the heavy on DOL rules at Ray Jay's national RIA event in St. Petersburg and goes light on fear-mongering

    The MarketCounsel CEO had good news as RJ's Bill Van Law let RIAs know that the Alex. Brown deal brings alternative investment choices, services for the UHNW market, new lending offerings and multicurrency capabilities

    October 10, 2016 — 6:41 PM UTC by Guest Columnist Anthea Penrose

    Brooke's Note: I have never hidden my hopes that a broker-dealer would go all-in on building an RIA custody unit. Good things might happen. We have seen more than a few mega-institutions that flirted with doing just, that including Merrill Lynch and RBC. Both firms are quiet as ...

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    Tom Kimberly: We heard consistent feedback about the need for greater portfolio flexibility.

    Betterment makes Goldman Sachs and Vanguard partners as it shifts into higher RIA gear

    With advisors demanding to get back in the driver's seat, the robo's RIA chief, Tom Kimberly goes for two big-name model portfolio strategists under the 'Betterment for Advisors' brand

    September 14, 2016 — 1:29 PM UTC by Brooke Southall

    Brooke's Note: We have been talking about 'convergence' in the financial advice business from the days when people first realized that Schwab was trying to become Merrill Lynch and vice-versa. Schwab is winning that war for the middle by mostly every measure. Now it looks like ...

    Greg Vigrass: We're not incumbent on any system. That means we've got the ability to be far more flexible. We're like the plumbers.

    How custodians Folio Institutional and Equity Advisor Solutions keep on ticking -- Part 3 of 3

    Both custodians counter their peewee size by offering that something extra

    July 14, 2016 — 8:11 PM UTC by Lisa Shidler

    Brooke’s Note: Last but not least, we have Equity Advisor Solutions and Folio Institutional as micro-custodians that you might want to know about as your RIA custodian. See: The non-Big Four RIA custodians, no longer runts but stunted in growth, are applying tougher love ...

    1 Comment
    Tom Heffernan: I automate as much as I can. I can onboard 1,000 accounts today. Just automate so much of what we do that we don't have to add staff.

    How a Schwab cast-off became a niche custodian for RIAs who like to trade options

    MoneyBlock emerged from BrokersXpress after the San Francisco broker bought it but didn't want IBD reps in its mix

    July 13, 2016 — 8:51 PM UTC by Lisa Shidler

    Brooke’s Note: When lay people like me think of options trading, we think of some complicated high-paced crazy stuff. Used properly, options are a cheap way to hedge positions without paying insane hedge fund-level fees. That a new “custodian” has been formed with options ...

    Evan LaHuta: Is it reasonable to offer this type of discount for new clients, but not your long-term valuable existing clients?

    Schwab launches biggest RIA-targeted price war in years -- but TD and Pershing say they won't play along

    In what may be a prelude to commission-free RIA custody era, Schwab eliminates equity and ETF commissions for all new clients for a year; Fidelity says it is still cheaper

    July 1, 2016 — 8:25 PM UTC by Lisa Shidler

    Brooke’s Note: A throwaway line in the RIA business is that custody of RIA assets is a commoditized service. But is it? The price-chopping move by Schwab that we write about here is coupled with Schwab’s promise to spend millions advertising its RIAs ...

    Jon Patullo [r.] with Jim Dario: We started here in Texas with nine vendors in 2010 to start the conversation.

    Alert to Pershing's API move and eMoney's dashboard acumen, TD Ameritrade brings its API partners to Texas to drive home its first-mover advantage

    TD does (almost) Dallas as it announces 100-plus third-party vendor integrations while keeping an eye on the competition

    June 30, 2016 — 12:05 AM UTC by Timothy Welsh

    At the TD Ameritrade Institutional Technology Summit, the elephant in the TD-rented room was Pershing Advisor Solutions.

    A little more than a year ago, at Pershing’s INSITE conference in Orlando, Fla., the other Jersey City, N.J.-based RIA custodian validated its open API ...

    Christopher Norton: This campaign shows they are willing to ... run the type of national campaign these advisors could not execute on their own

    Schwab wows EXPLORE 2016 crowd with revived bid to advertise RIAs with two magic ingredients: Schwab branding and a budget of 'millions' of dollars

    Though skeptical observers call the effort window dressing, the San Francisco custody giant is incorporating lessons learned from the lackluster RIA-Stands-For-You campaign of 2011

    June 22, 2016 — 7:50 PM UTC by Lisa Shidler

    Brooke’s Note: Schwab is such a looming presence in the RIA business in its capacity as the key partner of 7,000 RIAs that we take note of even its smallest evolutions. But for the last several years, such metamorphoses have taken place predominately ...

    Joshua Pace: Some advisors have grown so frustrated that they make a change to go to independent custodians. We don't compete on any level with advisors.

    How an eclectic trio of RIA custodians are willfully gaining ground with snail-like precision -- Part 2 of 3

    Lazarus-like RBC has another new leader, as does Trust Company of America and Shareholders Service Group, which is selling itself as a Pershing reseller of high security, but with more agile service

    June 15, 2016 — 8:08 PM UTC by Lisa Shidler

    Brooke’s Note: In this second part of a three-part series on RIA custodians, I’ll start with the well-earned positive spin on the RIA custody ventures of RBC, Shareholders Service Group and Trust Company of America. RBC is a big, solid bank with a ...

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    Mark Tibergien dodges F-Bombs from Julia Louis-Dreyfus -- allowing women to dominate Pershing's grab for change.

    Spinning 200+ years of legacy culture as a virtue, BNY Mellon uses Pershing INSITE to show its software side, softer side -- as it gets beyond NetX360 and men with a hard-wired approach

    Whether real fire follows these new clouds of smoke remains to be seen but Pershing's open API, robo strategy and feminine revolution project an aura of uplift

    June 10, 2016 — 4:20 PM UTC by Guest Columnist Timothy D. Welsh

    Brooke’s Note: Pershing, as unit of BNY Mellon, is a riddle. When it is falling behind and looking outdated, it hides behind bureaucratic words and throws PR cold water on media that try to gain more insight. But here’s the thing. When BNY ...

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    Robb Baldwin: Dealing with advisors who require lots of effort with very little assets, you realize that some of the greatest risk you end up facing is from small advisors.

    The non-Big Four RIA custodians, no longer runts but stunted in growth, are applying tougher love to hobbyist RIAs

    In part one of a three-part series, we examine how seven small custodians -- starting with Trade PMR and Scottrade -- are evolving away from the Utopian model of 100% inclusivity

    June 7, 2016 — 10:14 PM UTC by Lisa Shidler

    Brooke’s Note: Disruption is everywhere in the in the RIA business, with new attempts to automate and scale the delivery of fiduciary-laced financial advice appearing or evolving every day, it seems. Yet RIA custody — with its fat profit margins and ubiquity — has remained immune ...