Raymond James to Use J.P. Morgan’s 55ip Tax-Good Portfolio Device

What You Have to Know

  • The broker-dealer is the primary to make use of 55ip’s know-how throughout its full suite of managed account providers.

Raymond James has picked J.P. Morgan Asset Administration’s 55ip know-how to reinforce its managed account platform with built-in tax administration capabilities. 

The association is “an industry-first partnership” that ought to assist Raymond James’ advisors make common modifications — like rebalancing and tax-loss harvesting  to shoppers’ managed accounts, leaders of the 2 corporations say. 

The 55ip software program, acquired in 2020 when J.P. Morgan purchased the know-how agency, is predicted to be absolutely deployed by Raymond James throughout its full suite of managed account providers by mid-2024. 

General, the deal underscores two developments in wealth administration: first, the rising demand for tax administration capabilities and, second, the increasing want for {industry} gamers to work with third events quite than construct new instruments alone, spend money on a whole overhaul or take different extremely disruptive and costly steps, in line with executives from the 2 corporations.

“Our partnership with Raymond James is an instance of how main asset administration and wealth administration corporations can associate past funding merchandise by offering value-added know-how,” George Gatch, CEO of J.P. Morgan Asset Administration, instructed ThinkAdvisor in an interview.

Plus, embracing integration can assist corporations keep away from the so-called “rip and exchange” value that — previously — “was concerned with adopting an answer like this,” mentioned 55ip CEO Paul Gamble. “So, a giant a part of our enterprise mannequin is to have the ability to combine our providers instantly into the place the enterprise and advisors are already doing enterprise at this time.”

To that finish, 55ip has constructed what Gamble calls a “very intuitive, advisor-led expertise” that features automated commerce technology and execution, as an example, so advisors can do real-time customization and tax administration “at scale however with out having to take up increasingly more of their time.”

In accordance with Gatch and Gamble, there’s an rising consensus that constructing tech instruments from scratch  with a purpose to ship added worth to shoppers  leads to increased prices and decrease efficiency relative to what could be achieved through partnerships and repair integrations.

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