WSJ Reports on Firm That Helps Wealth Advisors Start Trust Companies

MARSHFIELD, Mass., May 28 /PRNewswire/ -- The Wall Street Journal recently profiled Advisors Institutional Services (www.advisorsinstitutional.com) in the context of increased interest from wealth managers, investment advisors, broker-dealers and other financial institutions in creating and operating trust companies in South Dakota.

As the WSJ story (http://webreprints.djreprints.com/2436001012785.html) points out, South Dakota is becoming the top choice for trust providers. With ten new launches this year and a roster of 50 institutions currently conducting trust business in the wealth-friendly state, it's easy to see why banks and advisors alike are flocking to South Dakota.

Advisors Institutional Services helps financial professionals, law firms, pension plan administrators and banks determine whether a South Dakota-based trust company would complement their current service offerings and, if so, assists them in applying for a trust company license in the state and lining up operational support.

Most recently, Advisors International helped Pittsburgh-based fund processor Mid Atlantic Capital Group apply for a South Dakota trust charter, said President Les Revzon.

"The aging of the baby boomers has created an enormous need for trust services," Mr. Revzon said. "Our outstanding launch team has helped both boutique wealth managers and large institutions like Mid Atlantic Capital Group  -- which has $19 billion on its platform -- compete in this increasingly important market."

In fact, the WSJ story highlights a 2007 study by asset manager Franklin Templeton that concluded that some independent investment advisors could see 80% of the assets they manage move into trust accounts over the next decade as aging clients retire.

"A full 40% of today's wealthiest Americans have no will or trust in place," Mr. Revzon said. "The opportunities for those who provide such services are enormous."

South Dakota offers would-be trust providers numerous operational advantages, including low capital requirements, no state taxes on corporations or individuals, the ability to support all major types of trust structures (including asset protection trusts and multi-generational or "dynastic" trusts), and a favorable view on out-of-state entities setting up trust representative offices elsewhere.

For more on the opportunity that operating a trust business in South Dakota represents for financial professionals around the country, Advisors Institutional Services has published a special report, "Launching a South Dakota Trust Company: Guide to Operating Nationwide" (http://www.advisorsinstitutional.com/s/SouthDakotaReports.asp).

SOURCE Advisors Institutional Services