08.31.23

RIAs Think Their Custodians Can Do Better

by: Brianna Monsanto

Registered investment advisors (RIAs) want more innovation from their custodians but remain loyal to these providers and instead tap third-party tools and additional providers to satisfy unmet needs, according to a survey from San Francisco–based consulting firm F2 Strategy. The survey, which included responses from 29 RIAs and wealth and asset management firms that oversee a total of about $6 trillion in assets, found that 48% of firms surveyed identified operational enhancement as a needed improvement, and another 44% said that their current custodian doesn't offer integration capabilities. “The custodian might take a couple of days to get that account fully set up and ready to be funded… [It] makes those first couple of days a little sticky and not straightforward and streamlined as we would like,” said Doug Fritz, chief executive officer of F2 Strategy. “Universally, the RIAs say we could do better as an industry.”

Read the full article on Financial Advisor IQ