HOLLYWOOD, Fla., Feb. 1, 2016 /PRNewswire/ -- Rising college costs combined with changing distribution patterns for financial services products seem all but certain to raise the market share for financial advisors and broker-dealers in the sale of 529 plans, according to Michael DeNofrio, managing director and global head of subaccounting and transfer agency services for BNY Mellon. DeNofrio, made the comments on the growing share of these financial intermediaries at the 2016 NICSA Strategic Leadership Forum today in Hollywood, FL.
"BNY Mellon has significantly expanded its subaccounting platform for 529 plans since we began offering this service five years ago," DeNofrio said. "Over that period, we have converted more than 1.5 million accounts from three broker dealers and on to our platform and we are now the leading third-party provider of this service."
In 2016 BNY Mellon expects to add more than 100,000 accounts from two additional broker-dealers.
"We're seeing more 529 plans being distributed by financial advisors and broker-dealers as investors incorporate 529 plans into their overall financial planning," said DeNofrio. "When these plans were introduced in 1996, investors tended to buy them directly from the fund complexes."
DeNofrio credited advances in technology along with broader adoption of 529 plans as additional factors moving the distribution of these plans to the financial advisors and broker dealers.
NICSA is a nonprofit association that connects global investment management industry participants to help identify leading operating practices. A 529 plan is an education savings plan operated by a state or educational institution designed to help families set aside funds for future college costs.
BNY Mellon is the largest third-party provider of subaccounting services in the U.S., as ranked by the 2015 Mutual Fund Service Guide, the fifth year BNY Mellon has achieved this ranking. As of December 31, 2015, BNY Mellon provides subaccounting services to more than 140 million active subaccounted positions with more than $2.6 trillion in assets. BNY Mellon was the first service provider to offer the functionality allowing 529 plans to be subaccounted.
BNY Mellon's Asset Servicing business supports institutional investors in today's fast-evolving markets, safeguarding assets and enhancing the management and administration of client investments through services that process, monitor and measure data from around the world. We leverage our global footprint and local expertise to deliver insight and solutions across every stage of the investment lifecycle.
BNY Mellon is a global investments company dedicated to helping its clients manage and service their financial assets throughout the investment lifecycle. Whether providing financial services for institutions, corporations or individual investors, BNY Mellon delivers informed investment management and investment services in 35 countries and more than 100 markets. As of Dec. 31, 2015, BNY Mellon had $28.9 trillion in assets under custody and/or administration, and $1.6 trillion in assets under management. BNY Mellon can act as a single point of contact for clients looking to create, trade, hold, manage, service, distribute or restructure investments. BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation (NYSE: BK). Additional information is available on www.bnymellon.com/newsroom.
SOURCE BNY Mellon