Peter Mangan is no stranger to independent financial advisers, which is exactly why he left his alma mater,
The firm, which is due to open for business officially in June, hopes that advisers will find its brokerage and custodial services attractive enough to leave their current custodian.
Shareholder Services Group will provide not only the products (cleared through
But gaining ground in an already crowded marketplace will not be easy, industry observers said.
"The RIA clearing and custody marketplace is a difficult one to enter in this environment because
McGinness said that many firms feel that theres an opportunity to grab disgruntled Schwab and Waterhouse advisers who are feeling slighted that their firms might compete with them by offering discretionary advice.
By June of 2004, Shareholder Services Group hopes to manage approximately $500 million in assets. Transaction fees have not yet been finalized. Going forward, Mangan expects to add trust services and also plans to create an advisory board to help determine particular services that advisers want.
After Mangan created the adviser division at brokerage firm Jack White & Co., which TD Waterhouse bought in 1993, he headed up Waterhouses institutional services group. Later, he also became chief operating officer for its mutual fund division. Mangan said the parting with TD Waterhouse was amicable.