Bank trust companies are doing well, but threats for RIAs linger, according to Cerulli Associates, which estimates bank trust assets reached $2.3 trillion in 2012.
“Collectively, bank trusts manage an estimated $2.3 trillion in assets as of 2012, which is just shy of pre-2008 crisis levels,” Donnie Ethier, senior analyst at the Boston-based research firm, said in a statement. “Bank trusts have long been regarded as an important destination for wealth management among high-net-worth institutions and individuals.”
Cerulli defines a bank trust organization as a division of a bank or registered broker-dealer that provides fiduciary wealth management advice under the ’40-Act exemption, which exempts them from securities registration.
“Understanding the bank trust channel is crucial regardless of whether an asset manager is seeking a new distribution outlet, an established bank trust is in the midst of strategic planning, or a competing provider is contemplating the creation of a trust company to expand its offerings to savvy HNW investors,” Ethier said.