BNY Mellon’s Pershing unveiled two new pricing options for registered investment advisors Thursday: monthly-subscription and zero-transaction-fee pricing. With Pershing’s already existing variable pricing still in place as well, the $800 billion custodian now offers three pricing packages for advisors.
"As the only remaining custodian that does not compete with advisors for retail assets, we are setting a standard for transparency and how custodians should engage with advisory firms," said Jim Crowley, Pershing's CEO. "Our new pricing approach offers choice to align with client preferences and deliver greater value."
The Netflix-style subscription-based model is designed to be a simplified, predictable pricing approach. The tiered system—based on amount of assets—will start at $25 a month, offer tiered competitive cash yields, access to a suite of BNY Mellon ETFs that are soon to be launched, and feature no transaction fees on exchange traded funds, equities, fixed income securities or mutual funds.
The zero-transaction-fee model is intended to do what it says on the box—offer a low-cost option for portfolios heavy in equities and ETFs. And, the variable pricing model remains in place for advisors looking for a more bespoke experience.
“Our new pricing strategy is designed for advisors, in consultation with advisors, taking into consideration some of the long-term trends we see in the industry," said Ben Harrison, head of business development and relationship management for the RIA custody business at Pershing. "It empowers advisors to choose what's best for their clients and better aligns us with the fiduciary model. As the rest of our competitors double down on the direct-to-consumer retail channel, we are proud to be the only custodian doubling down on the future of the RIA business."
Pershing announced on Tuesday that Harrison will take over as CEO of Pershing's Advisor Solutions business on June 1, replacing longtime chief Mark Tibergien.