BNY Mellon to bulk up RIA custody business

* Custody sales director sees double-digit revenue growth

* BNY Mellon may sell clients private bank credit, forex

By Joseph A. Giannone

NEW YORK, May 24 (BestGrowthStock) – Bank of New York Mellon
Corp’s (BK.N: ) wealth management arm plans to expand its
securities custody business among registered investment
advisers, entering a fast-growing corner of the market led by
Charles Schwab Corp (SCHW.N: ) and Fidelity.

BNY Mellon announced on Monday the hiring of former
Investors Bank & Trust and Schwab executive Peter Berg as its
national custody-sales director. Berg joined the bank about six
weeks ago.

Predecessor Bank of New York has been providing bank
custody services to trusts and endowments for 25 years, while
its Pershing LLC division offers parallel custody services to
brokers and investment advisers.

Some investors prefer to or by law must leave their
securities only with a bank custodian, Berg said. BNY Mellon
Wealth Management currently does business with 200 RIAs that
manage $80 billion in client assets.

Berg expects the firm will generate “double digit revenue
growth” by promoting the strength of the parent bank and by
helping RIAs tap into other parts of BNY’s wealth management
arm for such services as jumbo mortgages and foreign exchange.

“We’re taking a close look at how we can add value in the
compliance and regulatory environment,” Berg said. “We
definitely know how we can add value on the private banking
side.”

BNY Mellon’s National Custody, the business Berg will
promote, focuses on firms that manage at least $500 million in
assets and where accounts have $1 million on average.

The bank will be competing with custodians such as Schwab,
Fidelity and TD Ameritrade Holding Corp (AMTD.O: ), which have
been aggressively trying to sign independent advisers to their
trading and clearing networks.

Other banks, including Wells Fargo & Co (WFC.N: ) and Royal
Bank of Canada’s (RY.TO: ) RBC Capital, also intend to expand
their RIA networks.

Investment Research

(Reporting by Joseph A. Giannone; editing by Andre Grenon)

BNY Mellon to bulk up RIA custody business