In a Pershing Insite 2013 general session with Pershing’s Chief Relationship Officer Jim Crowley on Wednesday, Mark Tibergien told the 1,400 attendees that “you can expect four things from us”:
1) that Pershing will provide a dependable core of services and products
2) that Pershing will make it easier to do business with us
3) that Pershing will be an extension of your offerings, and
4) that Pershing will give you access to the world.
In a follow-up interview on Thursday during the 15th annual Insite conference, Tibergien (left), CEO of Pershing Advisor Solutions (and a regular columnist for Investment Advisor) expanded on those comments in his trademark no-nonsense manner.
As for extending advisor offerings for clients, Tibergien pointed out the excellent response to two new offerings through PAS.
One is the provision of private banking services to PAS clients through an agreement with BNY Mellon Private Banking announced formally June 4, but which since its soft launch a few weeks ago has been well received by RIAs who custody with Pershing.
Designed for high-net-worth and ultra-HNW clients, the private banking services allow those clients to stay invested in the market but to use their assets as collateral for jumbo mortgages and an investment credit line (ICL) for loans of $1 million or more. More than $40 million in loan applications have been made since the soft launch, Tibergien said.
The second new offering is an integrated bank and brokerage custody arrangement that PAS has made with the Wealth Management Advisor Custody Group of BNY Mellon. Tibergien said that 20% of RIAs already use bank custody for some clients, and that 15% of the $2 trillion managed by RIAs is in bank custody arrangements.
While Tibergien said this group already had a “cross-referral arrangement” with BNY Mellon’s custody group, “they now report into us,” that there is a common service team for those bank-custodied assets, “adding a layer of efficiency” for RIAs, providing “one solution with a common service charge.”
Extending these formerly BNY Mellon-specific services to PAS advisors fits into Pershing Chairman Brian Shea’s stated goal in his welcome to attendees of Pershing Insite 2013 “to unlock the value of all of BNY Mellon to all of you in this room.”