Expected to Help Fund Sponsors Increase Distribution
NEW YORK, June 1, 2011 — BNY Mellon Asset Servicing, the global leader in investment services, announced today that it has expanded its subaccounting services beyond mutual funds to include 529 plans, a type of tax-advantaged college savings plan.
This service is expected to help fund sponsors increase the distribution of 529 plans because it automates much of the processing that formerly was a paper-intensive procedure, which made it cumbersome for broker dealers and advisors to track client information.
"This is now a much easier product for broker dealers and advisors to sell," said Michael DeNofrio, head of US investor services within BNY Mellon Asset Servicing's Global Financial Institutions business. "This first step in expanding subaccounting services beyond traditional mutual funds will open the door to a growing number of investment products, including fund-sponsored individual retirement accounts."
BNY Mellon's first 529 client is a broker dealer, which can now benefit from rolling up the trades of its 529 plan clients into a single omnibus account for each 529 plan in which its clients participate. The creation of the omnibus accounts is expected to benefit the broker dealer with more efficient transaction processing and other cost savings.
Broker dealers utilizing this service will be able to self-clear trades, including trade placement, trade aggregation, trade settlement and reconciliation.
BNY Mellon Asset Servicing offers clients worldwide a broad spectrum of specialized asset servicing capabilities including custody and fund services, securities lending, performance and analytics, and execution services.
BNY Mellon is a global financial services company focused on helping clients manage and service their financial assets, operating in 36 countries and serving more than 100 markets. BNY Mellon is a leading provider of financial services for institutions, corporations and high-net-worth individuals, offering superior investment management and investment services through a worldwide client-focused team. It has $25.5 trillion in assets under custody and administration and $1.2 trillion in assets under management, services $11.9 trillion in outstanding debt and processes global payments averaging $1.7 trillion per day. BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation (NYSE: BK). Additional information is available at www.bnymellon.com.