Waterhouse Vets to Open Custodian
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Wednesday, April 16, 2003

Waterhouse Vets to Open Custodian

A pair of TD Waterhouse/Jack White veterans are going after their old employer. Peter Mangan and Robert O. Reed are leading Shareholder Services Group into the arena to join the broker-dealers that serves investment advisors. The new firm is set to open its doors this June.

Peter Mangan, who headed the advisor fund network at TD Waterhouse is president and chief executive officer of Shareholder Services while Robert O. Reed is executive vice president and chief operating officer. Reed had been executive vice president of Jack White & Company before that firm was sold to Waterhouse.

The pair said that they will announce further management hires in the near future.

Mangan said that the firm plans to offer advisor services without offering retail products that compete with the advisors' business. The three leading advisor custodians -- Schwab, TD Waterhouse and Fidelity -- have all come under attack from advisors who feel that they are a competitive threat to the advisor.

Because of that displeasure, some advisors have turned to alternatives such as Ameritrade. Shareholder Services Group hopes to tap into that discontent.

Shareholder Services Group will offer brokerage and asset custodial services exclusively for independent financial advisors and considers the advisor as the customer. It will not offer any retail services directly to individual investors, says Mangan. The firm will use Bank of New York/Pershing as the clearing provider for custody and clearing services.

"The relationship between the independent financial advisor and client should be respected and valued. Since we will have no retail services, advisors can be assured that we will protect their client relationships," says Mangan. "Our mission is to provide a full array of brokerage services and investment products, and a superb technology platform to enable advisors to manage their clients' assets efficiently."

"Both Peter and I have worked directly with independent financial advisors for a number of years and have found the relationship-building process to be very enjoyable. It is a pleasure to work with professionals who understand the business," says Bob Reed, executive vice president and chief operating officer of Shareholder Services Group. "We also developed exclusive brokerage and technology services for advisors which have become commonplace within the industry. Our focus is on service, always has been and always will be."

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