BNY Mellon says the number of active accounts on its subaccounting platform has nearly tripled from 2006 to more than 100 million accounts today.
The bank is the largest subaccounting provider in the U.S., and the second largest provider of mutual fund transfer agency, according to a 2012 survey by Money Management Executive.
Broker-dealers and other distributors are moving from transfer agency to subaccounting to facilitate investment products distributed through intermediaries, BNY Mellon says, and this has fueled the rapid growth of the clearing method.
In recent years, there has been an explosion of broker-dealers moving into the subaccounting environment,” says Elisa Colkitt, head of subaccounting client services for BNY Mellon Asset Servicing. “Our team has been working hard to accommodate rising demand, while simultaneously streamlining and enhancing the platform to position our clients to significantly grow their enterprises over time.”
“We expect this growth to continue as many of our clients move more of their broker-controlled positions to the subaccounting platform. Additionally, we are now seeing a trend toward other account types, such as 529 plan accounts, migrating to the subaccounting recordkeeping model, says Michael DeNofrio, head of Enterprise Investor Services at BNY Mellon Asset Servicing.
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