Fidelity Institutional combines clearing and custody divisions

Source: Fidelity Institutional

Fidelity Institutional, the division of Fidelity Investments® that provides clearing, custody and investment management products to registered investment advisors (RIAs), broker-dealers, family offices, retirement recordkeepers and banks, today announced the alignment of its clearing and custody units.

In conjunction, Fidelity Enterprise Services also announced the creation of a new organization, Fidelity Wealth Technologies, a group that will drive and deliver digital solutions across the Fidelity enterprise and throughout the financial advice industry.

Sanjiv Mirchandani, currently the president of National Financial, has been named the president of Fidelity Clearing and Custody, and Michael Durbin, currently president of Fidelity Institutional Wealth Services, will become president of Fidelity Wealth Technologies. These new leadership roles are part of a long-term strategy to recognize the growing, emerging and converging business models in the financial advice industry and to organize the clearing and custody units to better serve clients.

In the last five years, Fidelity has aligned several core functions across the clearing and custody businesses, including the client experience team, the product group and the platform technology team. In July 2013, the business further aligned around several core client segments: banks and broker-dealers under National Financial and registered investment advisors, professional asset managers, strategic acquirers and retirement advisors and recordkeepers under Fidelity Institutional Wealth Services.

“Combining our clearing and custody organizations into one unit under a single leader helps us deliver the best solutions for our clients and is the next logical step in the process that we started several years ago,” said Gerard McGraw, president of Fidelity Institutional.

Since the alignment of the client segments more than 18 months ago, assets under administration in the clearing and custody business have grown by nearly 30 percent1 and client loyalty metrics have improved2 . The Fidelity clearing and custody businesses ended 2014 with a record high of nearly $1.5T in assets under administration, servicown by nearly 30 percent1 and client loyalty metrics have improved2 . The Fidelity clearing and custody businesses ended 2014 with a record high of nearly $1.5T in assets under administration, servicing more than 3,200 advisory firms and 5.5 million accounts.

The Fidelity Wealth Technologies group will help to speed innovation on behalf of clearing and custody clients, Fidelity’s broader array of customer segments and firms throughout the financial advice industry. Upon the expected closing of the pending transaction, Edmond Walters, founder and CEO of eMoney Advisor, will report into Durbin and Fidelity Wealth Technologies, and maintain his role leading eMoney Advisor. Fidelity Wealth Technologies will add to or align efforts under this group, based on the needs of Fidelity’s clients and the broader financial advice industry.

“Our clients’ technology needs across the enterprise and the broader technology needs of the financial services industry are limitless, so having a dedicated organization to grow, develop and rapidly deliver technology solutions can help drive our collective success,” said Michael Wilens, president of Fidelity Enterprise Services.

Earlier this year, in parallel to Fidelity Investment’s agreement to acquire eMoney Advisor, Fidelity Institutional committed to a significant, multi-year investment in a next generation technology platform, which will offer comprehensive data management, efficient and integrated workflow capabilities and collaborative tools for investors, advisors and home offices. eMoney Advisor is expected to play a key role in the deployment of the platform, accelerating Fidelity’s efforts with regard to data aggregation and investor/advisor collaboration tools -- all in a more integrated fashion.

Mirchandani will continue to report to McGraw, and Durbin will report to Wilens. The Fidelity Institutional Wealth Services senior leadership team members, who have reported into Durbin, will now report into Mirchandani.

“Sanjiv and Mike have done an outstanding job leading their teams and collaborating on behalf of our clients. We are fortunate to have two exceptional leaders that can help propel us forward,” McGraw added.

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