Products February 28, 2011

National Advisors Trust Expands Turnkey Program

The Trust Marketing Office (TMO) is aimed to help registered investment advisers (RIAs) attract and retain high net worth clients. 
Reported by

National Advisors Trust created the Trust Representative Office (TRO) in 2010, which has been providing RIAs with branded trust services and a turnkey marketing program to grow their trust business.The new TMO will place a dedicated Trust Officer in the RIA’s office to manage the TRO and market trust services to high net worth clients and local Centers of Influence (CoI).   

“RIAs realize that in order to grow a sustainable business, trusts need to be in their future,” said Ronald G. Ferguson, CEO of National Advisors Trust.  “Even with the recent tax law changes, over 70% of families with net worth exceeding $1 million use trusts in their estate plans. The TMO program puts the sponsoring RIA in the driver’s seat and helps the RIA build a stronger, more sustainable market position and business model for the future.”

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As part of its TMO launch, National Advisors hired Janet Bandera as Senior Vice President and Trust Officer for The Moneta Group, the first firm to adopt the TRO turnkey program (see “Moneta Group Joins National Advisors Trust Program”).Bandera, an estate planning attorney, will serve the role of Trust Officer for Moneta Trust. She will be responsible for implementing the TRO, working with Moneta’s investment advisers on trust and estate planning services with clients, and help in marketing and positioning trust services with local CoI.  Bandera has more than 15 years experience practicing law and providing consultation and advice regarding estate and trust matters.

Compliance February 28, 2011

State Street SecLending Program Remains under Scrutiny

State Street Corp. has reported that the Securities and Exchange Commission (SEC) is continuing its investigation of the Boston-based company’s stock lending program.
Reported by

“The SEC is conducting an inquiry into the management of our securities lending program and disclosures made to … participants,” State Street said in a regulatory filing, according to the Boston Business Journal. State Street said it is cooperating with the investigation.  

The news report said that in 2008, securities finance generated $1.23 billion in revenue for StateStreet, but during the early weeks of the 2008 credit crisis, the collateral backing loaned securities fell below industry benchmarks, and when some State Street clients tried to execute redemptions, they faced restrictions.  

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Some clients filed lawsuits over the firm’s securities lending practices (see “Charges against State Street over Securities Lending Program Dismissed“).  

Last July, State Street announced a one-time $330 million cash contribution to certain common and collective trust funds managed by State Street Global Advisors (SSgA) that engage in securities lending (see “State Street Announces Sec Lending Adjustments“).

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