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Pershing Expands Offerings From BNY Mellon Parent to Advisors, BDs

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In his remarks Wednesday at the opening of Pershing’s Insite 2013 conference in south Florida, Chairman Brian Shea welcomed the 1,400 attendees by providing some disappointing news and some good news.

The disappointing news was that keynote speaker Hillary Rodham Clinton would not be appearing, since she was eulogizing the late Sen. Frank Lautenberg, D-N.J., at his funeral (the replacement speaker for Thursday would be another former Cabinet member, ex-Defense Secretary and CIA chief Robert Gates). The good news for advisors and broker-dealers who work with Pershing is that in his expanded role with Pershing’s parent, Shea is committed to “unlocking the value of all of BNY Mellon to all of you in this room.”

Shea began by considering the state of BNY Mellon—”It remains very strong”—mentioning that not only has the bank performed well in the Treasury Department’s stress tests, but also that those tests revealed that BNY Mellon would remain profitable even under the most stressful conditions.

“That should give you confidence,” he told attendees of Pershing’s 15th annual Insite conference, “that you’ve chosen the right partner.” As evidence of the parent company’s commitment, Shea said that BNY Mellon invests $2 billion annually in technology, with “a large chunk” of that going to Pershing, “which serves you.”

Shea is now chairman of Pershing, but he is also taking on additional responsibilities at BNY Mellon domestically and globally. Longtime Pershing executive Ron DeCicco is now CEO of Pershing, and replacing him as COO is Lisa Dolly, another veteran Pershing executive (more about this in a future blog).

Among the key solutions that Pershing now makes available to RIAs and broker-dealers, Shea highlighted the combination last year of Lockwood and BNY Investment Management, which provides more heft and choice to advisors in the separately managed account space, and the move in May 2013 to combine Pershing Advisor Solutions’ brokerage custodial offerings with BNY Mellon’s bank custody operations.

In a presentation Wednesday following Shea’s welcoming comments, PAS CEO Mark Tibergien said the combined offering—“one solution with a common service charge”—adds “a layer of efficiency for advisors,” since some 15% of all advisor assets are currently held at a bank custodian for various reasons. Bank custody is often preferred, he said, for trusts, foundations and the holdings of multigenerational families, many of whom perceive bank custody to be safer.


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