Broker-dealers have a need to manage relationships with their fund sponsors. This often takes time and resources because of the volume of relationships these firms have with the funds. Often, these firms engage in omnibus relationships with the funds—providing the firms more control for the client experience and product offering.
The subaccounting model works for larger broker-dealers who have the resources to manage those relationships and contracts required for multiple sponsors. However, others will face challenges when it comes to implementing a subaccounting model, such as:
- Does the firm meet the fund minimum requirement for an omnibus relationship?
- Is the position scale large enough to allow for negotiating with the fund?
- Are internal implementation resources sufficient?
- What is the time to market based on multiple individual fund conversions?
There is a solution that helps minimize the challenges and provides benefits for broker-dealers that traditionally do not have the bargaining power with these funds: a Superomnibus subaccounting model. Benefits include:
- Gain a new source of service revenue fees.
- More control over the rep and client experience with mutual funds.
- Leverage the superomni providers selling agreements with the fund companies.
- Maximize the value of mutual fund assets.
- Allow the broker-dealer to maintain the relationships with the funds.
- Achieve scale in servicing and support.
- Realize faster speed to market.
At SS&C, we have implemented many subaccounting solutions for leading broker-dealers. Our superomni model allows self-clearing firms that traditionally have not had the size to participate in this market the ability to do so. Our comprehensive solution helps you compete and grow more effectively. To learn about how SS&C’s Super Omnibus Subaccounting solution can help your business visit our Subaccounting product page or download our "Super Omnibus Subaccounting" brochure.
