US Wealth Manager - New Managed Fixed Income Business Launch

The Requirement

A US wealth management division of a prominent financial institution aimed to broaden its services by introducing an actively managed, fee-based fixed income solution. This new offering, catering to both immediate cash liquidity needs and longer-term debt instruments, was designed to enhance their portfolio for current clients through financial advisors and their investment banking network. It also strategically positioned the firm to attract new ultra-high-net-worth and institutional clients. To navigate this expansion, the firm partnered with RegEdge for guidance on their go-to-market strategy and support in launching these new service offerings.

The Solutions

Business Case Planning

RegEdge worked closely with the heads of wealth management business at the client to define the strategy and success criteria to launch the solution and to bring a minimum viable product to market (MVP). We established the key objectives, evaluated marketing channels and conceptualized leveraging existing financial advisors and investment banking units within the firm and put together a detailed business plan proposal. RegEdge prepared number of marketing collaterals to assist with socializing the business proposal and getting the buy-in from the management across the various business divisions at the firm.

Initial Launch and Minimum Viable Product

RegEdge assisted the client with the end to end operational & administrative processes required to set up and enable the launch of the new business. This included new filings & amendments with the regulatory authorities for approvals, documentation required internally for getting approvals from New Business Committees, and detailed roadmap for operational, supervisory and compliance processes to be in-place as a pre-requisite for the launch. We worked closely with the newly recruited Head of the managed Fixed income business to identify all the key components that needed to be in place such as required business and regulatory approvals, required infrastructure for trading, managing portfolios and running performance reports for the new business, and all the supervision & compliance process in place required for Day 1.

Vendor Assessment and Implementation

We focused on portfolio management tool, and GAAP reporting vendor solutions as key requirements to launch the business. RegEdge was able to leverage its deep expertise and knowledge in the vendor landscape to accelerate finding the right fit vendors for the client. RegEdge managed the identification, engagement, and implementation of the best-suited technology partners for the business solution. We oversaw the implementation of the chosen third-party portfolio management system and managed the coordination and integration with other third-party vendors such as order management systems and execution venues, such as ECNs. Additionally, we helped the client integrate the process and data flow to leverage the existing supervision and compliance processes for wealth management business to be ready for the launch.

Strategic Implementation Support

By working closely with internal and external stakeholders we coordinated the many separate threads to successfully execute the roadmap and bring the new business solution to life. We oversaw each key area from design through to implementation including, external execution facility, dealer onboarding, separately managed accounts (SMA), custodian onboarding, trade and operational flows, tri-party repo, counterparty onboarding and KYC, compliance and supervision procedures and regulatory filings, and client reporting.

The Results and Benefits

Our engagement as the preferred partner to our wealth management client in helping them bring their business idea to fruition, allowed them to benefit from RegEdge’s domain-specific capabilities and experience. We have a holistic understanding of the marketplace in which we operate and the technology vendor landscape that serves it. We were able to ensure, by applying quantitative methodologies, that the best scalable solutions were integrated into the business from the start, setting them up for seamless future growth and success.