Raymond James has picked J.P. Morgan Asset Administration’s 55ip know-how to reinforce its managed account platform with built-in tax administration capabilities. 

The association is “an industry-first partnership” that ought to assist Raymond James’ advisors make common adjustments — like rebalancing and tax-loss harvesting — to shoppers’ managed accounts, leaders of the 2 corporations say. 

The 55ip software program, acquired in 2020 when J.P. Morgan purchased the know-how agency, is anticipated to be totally deployed by Raymond James throughout its full suite of managed account providers by mid-2024. 

Total, the deal underscores two developments in wealth administration: first, the rising demand for tax administration capabilities and, second, the increasing want for {industry} gamers to work with third events slightly than construct new instruments alone, put money into a whole overhaul or take different extremely disruptive and costly steps, in line with executives from the 2 corporations.

“Our partnership with Raymond James is an instance of how main asset administration and wealth administration corporations can companion past funding merchandise by offering value-added know-how,” George Gatch, CEO of J.P. Morgan Asset Administration, advised ThinkAdvisor in an interview.

Plus, embracing integration may also help corporations keep away from the so-called “rip and change” value that — up to now — “was concerned with adopting an answer like this,” mentioned 55ip CEO Paul Gamble. “So, a giant a part of our enterprise mannequin is to have the ability to combine our providers immediately into the place the enterprise and advisors are already doing enterprise right now.”

To that finish, 55ip has constructed what Gamble calls a “very intuitive, advisor-led expertise” that features automated commerce technology and execution, as an example, so advisors can do real-time customization and tax administration “at scale however with out having to take up increasingly of their time.”

In line with Gatch and Gamble, there’s an rising consensus that constructing tech instruments from scratch — with the intention to ship added worth to shoppers — ends in larger prices and decrease efficiency relative to what could be achieved through partnerships and repair integrations.