Custodian Services & Independent Portfolio Management Firms

About This Episode

While a portfolio management (PM) firm is responsible for managing money, portfolios, and other wealth management services, they don’t hold money or client accounts at the firm. That’s where a third-party independent custodian comes in.

Today we’re getting the inside scoop from Matthew Pollock on the role of custodians in the financial services world. Matthew is Regional Vice President at National Bank Independent Network; one of two custodians that TMA works with to custody client assets.

In this episode, Matthew and Keith talk about why third party custodians are crucial partners for PM firms, how discount brokerages can afford to offer no trading fees, the latest trends Matthew has identified from his work with PM firms across the country, succession planning in PM firms, and so much more!

Key Topics:

• Why custodians are important for PM firms (1:33)
• Introducing Matthew Pollock (2:53)
• What is a custodian? (5:17)
• What it means to be an independent firm (5:43)
• Why we chose to be an independent PM firm (6:47)
• Different service offerings of portfolio managers (7:50)
• Advantages of the US Registered Investment Advisor model (9:11)
• Huge opportunities for independent firms to expand their services (11:30)
• Why discount brokerage platforms can charge zero trading fees (14:40)
• What makes the professional money manager model different (16:28)
• Benefits of working with a custodian (18:19)
• How custodial relationships protect investors from bad actors (19:58)
• Why it’s difficult to get a portfolio manager license (22:26)
• Using technology to provide a better client experience (24:41)
• Emerging trends in client communication (25:53)
• Why we think the move to virtual is here to stay (27:08)
• Succession planning for portfolio management firms (29:16)
• TMA’s Next Gen Advisor strategy (30:19)
• Why experienced investment advisors are leaving large firms (31:02)
• Why Matt enjoys working with independent PM firms (33:20)
• And much more!