Should your firm be subaccounting mutual funds?
The servicing model for mutual fund accounts at the largest Broker Dealers has shifted from an NSCC Networking Level 3 model, with accounts at both the distributor and the fund, to an omnibus model where accounts exist and are serviced solely by the Broker Dealer.
Whether its mutual fund wrap programs, college savings plans, or fee based advisory accounts, the subaccounting model or omnibus recordkeeping provides unique advantages. These advantages translate into substantial operating costs savings, revenue opportunities and streamlined client service not available in traditional no transaction fee processing solutions. Envision can help you understand if your firm should be subaccounting your mutual fund positions.