HOLLYWOOD, Fla., Feb. 1, 2016 /PRNewswire/ -- Rising college costs
combined with changing distribution patterns for financial services
products seem all but certain to raise the market share for
financial advisors and broker-dealers in the sale of 529 plans,
according to Michael DeNofrio,
managing director and global head of subaccounting and transfer
agency services for BNY Mellon. DeNofrio, made the comments
on the growing share of these financial intermediaries at the 2016
NICSA Strategic Leadership Forum today in Hollywood, FL.
"BNY Mellon has significantly expanded its subaccounting
platform for 529 plans since we began offering this service five
years ago," DeNofrio said. "Over that period, we have converted
more than 1.5 million accounts from three broker dealers and on to
our platform and we are now the leading third-party provider of
this service."
In 2016 BNY Mellon expects to add more than 100,000 accounts
from two additional broker-dealers.
"We're seeing more 529 plans being distributed by financial
advisors and broker-dealers as investors incorporate 529 plans into
their overall financial planning," said DeNofrio. "When these
plans were introduced in 1996, investors tended to buy them
directly from the fund complexes."
DeNofrio credited advances in technology along with broader
adoption of 529 plans as additional factors moving the distribution
of these plans to the financial advisors and broker dealers.
NICSA is a nonprofit association that connects global investment
management industry participants to help identify leading operating
practices. A 529 plan is an education savings plan operated by a
state or educational institution designed to help families set
aside funds for future college costs.
BNY Mellon is the largest third-party provider of subaccounting
services in the U.S., as ranked by the 2015 Mutual Fund Service
Guide, the fifth year BNY Mellon has achieved this ranking. As of
December 31, 2015, BNY Mellon
provides subaccounting services to more than 140 million active
subaccounted positions with more than $2.6
trillion in assets. BNY Mellon was the first service
provider to offer the functionality allowing 529 plans to be
subaccounted.
BNY Mellon's Asset Servicing business supports institutional
investors in today's fast-evolving markets, safeguarding assets and
enhancing the management and administration of client investments
through services that process, monitor and measure data from around
the world. We leverage our global footprint and local expertise to
deliver insight and solutions across every stage of the investment
lifecycle.
BNY Mellon is a global investments company dedicated to helping
its clients manage and service their financial assets throughout
the investment lifecycle. Whether providing financial services for
institutions, corporations or individual investors, BNY Mellon
delivers informed investment management and investment services in
35 countries and more than 100 markets. As of Dec. 31, 2015, BNY Mellon had $28.9 trillion in assets under custody and/or
administration, and $1.6 trillion in
assets under management. BNY Mellon can act as a single point of
contact for clients looking to create, trade, hold, manage,
service, distribute or restructure investments. BNY Mellon is the
corporate brand of The Bank of New York Mellon Corporation (NYSE:
BK). Additional information is available on
www.bnymellon.com/newsroom.
Contact:
Mike Dunn
+1 732 667 2678
mike.g.dunn@bnymellon.com
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SOURCE BNY Mellon