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What You Have to 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 modifications — like rebalancing and tax-loss harvesting — to shoppers’ 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 by mid-2024.
General, the deal underscores two traits 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 an entire overhaul or take different extremely disruptive and costly steps, in accordance 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, advised ThinkAdvisor in an interview.
Plus, embracing integration might help companies keep away from the so-called “rip and substitute” price that — up 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 this time.”
To that finish, 55ip has constructed what Gamble calls a “very intuitive, advisor-led expertise” that features automated commerce era and execution, as an example, 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 — so as to ship added worth to shoppers — leads to greater prices and decrease efficiency relative to what might be achieved by way of partnerships and repair integrations.
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