JERSEY CITY, N.J., March 2, 2011 — Pershing LLC, a BNY Mellon company, announced today the availability of an independent study, The Economics of Constructing a Hybrid Platform, that provides broker-dealers with an analysis of investment professional trends and describes the need to support dually registered advisors' shifting capabilities toward a hybrid platform. The study offers a road map to understanding the economics and creating a tactical plan for developing a hybrid platform. A hybrid platform accommodates dually registered advisors by offering them the ability to integrate fee-based and commission-based business.
The Economics of Constructing a Hybrid Platform, developed with Advisor Growth Strategies, LLC, details the opportunity created by the ongoing shift among investment professionals and independent broker-dealers toward fee-based business. The study advises broker-dealers to develop a strategic plan to incorporate fee-based business and includes case studies of three broker-dealers—American Portfolios Financial Services, Summit Brokerage Services, Inc. and Capital Analysts Incorporated—to illustrate different and successful approaches to launching a hybrid solution. The study also warns that independent broker-dealers who choose to ignore the trend towards advisory and hybrid models may see their growth marginalized.
Key findings from the study include:
"The Economics of Constructing a Hybrid Platform is the first study to offer broker-dealers an in-depth look at the economics and diverse challenges of implementing a hybrid strategy and provide guidance on how to seize this opportunity," said Jim Roth, managing director of Pershing. "A growing number of independent broker-dealers have taken proactive measures to transform their businesses to attract the fastest growing segment in advisory services—the hybrid advisor."
"Broker-dealers seeking to explore the hybrid opportunity need to align with service providers who have a deep understanding of the complexities of both fee and commission based business and can work with them to develop plans specific to the broker-dealer's unique business challenges," said Mark Tibergien, CEO of Pershing Advisor Solutions. "Broker-dealers who develop thoughtful hybrid strategies will improve their ability to recruit investment professionals, and grow and compete in the next decade and beyond."
To download a copy of the study, please visit www.pershing.com.
Pershing LLC (member FINRA/NYSE/SIPC) is a leading global provider of financial business solutions to more than 1,500 institutional and retail financial organizations and independent registered investment advisors who collectively represent approximately five million active investors. Located in 21 offices worldwide, Pershing and its affiliates are committed to delivering dependable operational support, robust trading services, flexible technology, an expansive array of investment solutions, practice management support and service excellence. Pershing is a member of every major U.S. securities exchange and its international affiliates are members of the Deutsche Borse, the Irish Stock Exchange and the London Stock Exchange. Pershing LLC is a BNY Mellon company. Additional information is available at www.pershing.com.
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, providing superior asset management and wealth management, asset servicing, issuer services, clearing services and treasury services through a worldwide client-focused team. It has $25.0 trillion in assets under custody and administration and $1.17 trillion in assets under management, services $12.0 trillion in outstanding debt and processes global payments averaging $1.6 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.