What You Must Know
- The broker-dealer is the primary to make use of 55ip’s expertise throughout its full suite of managed account providers.
Raymond James has picked J.P. Morgan Asset Administration’s 55ip expertise to reinforce its managed account platform with built-in tax administration capabilities.
The association is “an industry-first partnership” that ought to assist Raymond James’ advisors make common adjustments — like rebalancing and tax-loss harvesting — to purchasers’ managed accounts, leaders of the 2 companies say.
The 55ip software program, acquired in 2020 when J.P. Morgan purchased the expertise agency, is anticipated to be totally deployed by Raymond James throughout its full suite of managed account providers by mid-2024.
General, the deal underscores two tendencies in wealth administration: first, the rising demand for tax administration capabilities and, second, the increasing want for {industry} gamers to work with third events slightly than construct new instruments alone, spend money on a whole overhaul or take different extremely disruptive and costly steps, in keeping with executives from the 2 companies.
“Our partnership with Raymond James is an instance of how main asset administration and wealth administration companies can accomplice past funding merchandise by offering value-added expertise,” George Gatch, CEO of J.P. Morgan Asset Administration, instructed ThinkAdvisor in an interview.
Plus, embracing integration will help companies keep away from the so-called “rip and exchange” price that — prior to now — “was concerned with adopting an answer like this,” mentioned 55ip CEO Paul Gamble. “So, an enormous a part of our enterprise mannequin is to have the ability to combine our providers immediately into the place the enterprise and advisors are already doing enterprise at present.”
To that finish, 55ip has constructed what Gamble calls a “very intuitive, advisor-led expertise” that features automated commerce technology and execution, as an illustration, so advisors can do real-time customization and tax administration “at scale however with out having to take up increasingly more of their time.”
In response to Gatch and Gamble, there’s an rising consensus that constructing tech instruments from scratch — to be able to ship added worth to purchasers — ends in increased prices and decrease efficiency relative to what could be achieved through partnerships and repair integrations.
