Deciding on an outsourcing partner for custody and clearing services is one of the most critical decisions you face for your Advisory practice. While the economics of an outsourcing arrangement are important, to us they are viewed as simply table stakes. In assessing potential firms, it’s critical to consider issues that are not as easily quantifiable. You need to be able to read between the lines and consider the issues that don’t come through on a typical cost/benefit analysis.
Learning about the culture of the firm and the quality of the people who will be managing your relationship is paramount. That means taking the time for a face-to-face visit. If a picture is worth a thousand words the visit is worth a thousand PowerPoint promises.
The custodial partner you select should be financially stable, boast a strong balance sheet and most importantly be deeply committed to the custody business. Further, the advisory firm and the custodian should have shared values and a similar culture. Take the time to understand the core values and vision of your potential partner.
Another important consideration is partnering with a custodial partner that is closely aligned with, and fully supported by, a full service investment dealer and thus highly familiar with the wealth management business and advisor needs. The same products and services developed by the firm and provided to its advisors are likely to be available to custodial clients on a white label basis and at the margin.
When it comes to expanding and enhancing your firm’s capabilities, Raymond James Correspondent Services (RJCS) doesn’t just make virtually anything possible, we make it personal. You’ll receive individualized guidance from professionals who understand the needs of firms like yours and direct access to a full range of programs, products and cutting-edge technology to help you grow – all while maintaining the freedom to engage our resources at whatever level you need.
We have a deep understanding of both independent portfolio management boutiques and independent IIROC firms, and support both on our platform.