CUSO Financial Services and Sorrento Pacific Financial find success in providing piggyback services to credit union broker-dealers

Companies’ experts to speak on tri-party arrangements between CFS/SPF, clearing firms, and small broker-dealers at 2015 FINRA National Conference

SAN DIEGO, CA (May 26, 2015) — Sister companies, CUSO Financial Services, L.P. (CFS) and Sorrento Pacific Financial, LLC (SPF), full-service broker-dealers and SEC Registered Investment Advisers providing customized investment and insurance solutions to financial institutions, have expanded their tri-party clearing, or “piggyback,” services due to increased marketplace demand. Piggyback services are appropriate for investment programs within small- to mid-sized banks and credit unions that already have broker-dealer designations. As one of the few third-party marketers to offer piggyback arrangements, CFS/SPF specialists have been invited to speak on the topic during the 2015 FINRA National Conference, May 27-29, 2015 in Washington, DC.

Piggyback services provide a solution for these broker-dealers to help them keep up with the technology and regulatory changes in the industry. In such cases, the volume of business these broker-dealers are generating may make it difficult for them to acquire the technology and compliance resources necessary to compete. With the downward pressure on commission and fee revenue, it is increasingly hard for small broker-dealers to meet all the regulatory and operational requirements and to develop the services required to support a bank program and attract top advisors. Many clearing firms have raised the required level of capital and/or business volume and assets they require for the firm to secure an individual contract with a clearing firm.

The CFS/SPF tri-party arrangement enables a firm to access clearing services and competitive support tools and services at a cost that is proportionate to its size and revenue. In addition to being granted access to CFS/SPF’s clearing firm, Pershing, the broker-dealers gain the benefits of using CFS and SPF’s comprehensive technologyback-office, trade desk, and compliance consulting support.

With piggyback arrangements in place, small broker-dealers can focus on delivering high-quality services to customers and growing their own self-branded investment services business without facing unexpected costs or delays in service. The sister firms have provided piggyback services for more than ten years and recently have seen an increased demand for these arrangements, particularly in the banking industry.

“There are economic and competitive advantages to entering into a piggyback arrangement,” said Valorie Seyfert, CEO. “We not only fix the overhead costs so that broker-dealers can remain focused on sales, but we also provide them with a range of value-added benefits, including education, additional service delivery, invitations to our major conferences held throughout the year, and compliance oversight.”

Because of CFS/SPF’s expertise in this space, Vice President of Trading and Operations Monica Daggs will speak on a panel titled, “Small Firm Focus: Nuts and Bolts of Tri-Party Arrangements” at the 2015 FINRA National Conference on Thursday, May 28 from 11:15 a.m.-12:15 p.m. She will be joined by CEO/CCO David Martin from Keystone Capital Corporation, whose firm has a piggyback arrangement with CFS/SPF, and Managing Director and Deputy Chief Legal Officer Jeffery Bloch from Pershing LLC. The panel will discuss the benefits and operation of piggyback arrangements. The panel represents all three parties to the arrangement—an introducing firm, an intermediary firm and a clearing firm—and focuses on issues to consider when negotiating the contract, responsibilities of each broker-dealer, and risks associated with piggyback arrangements.

“It’s often a tough decision for bank and credit union broker-dealers to enter into piggyback arrangements, but if small broker-dealers are considering their clearing firm options and not receiving the support, pricing or reports they desire, they should consider the agreements that we offer,” said Daggs. “The broker-dealers still maintain operational control of their businesses, and they receive additional support by leveraging CFS/SPF’s size, award-winning technology, and infrastructure.”

For more information about piggyback services as well as the other types of investment services that CFS/SPF offer credit unions and banks, please visit their websites: CFS here and SPF here.

About CUSO Financial Services, LP and Sorrento Pacific Financial LLC

Full-service, sister broker dealers CUSO Financial Services, L.P. (CFS) and Sorrento Pacific Financial, LLC (SPF) (Members FINRA/SIPC) provide customized investment and insurance solutions to financial institutions throughout the country. Headquartered in San Diego, with branch offices and licensed representatives nationwide, both broker dealers are SEC Registered Investment Advisers, with expertise in key areas including retirement services, wealth management, and fee-based and insurance products for both individuals and business customers.  For more information, see or or visit their LinkedIn pages: CFS and SPF.

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