1346 The Alameda, STE 7-388, San Jose, Ca 95126

CASE STUDY #2 - Smith & Co. Broker/Dealer

This company utilized Omniscient’s compliance features to meet increased regulatory requirements across a large network of RIAs.

Smith & Co oversaw the brokerage operations of over 250 Registered Representatives (RR) engaged in various commission based business lines and control over $700mm in their corporate RIA. The company also had a client list of over 24 independent RIA firms who, while maintaining their own independent RIA, utilized Smith’s Broker/Dealer to accommodate their brokerage business as RR’s of Smith & Co.. These RIA firms managed an aggregate $10-12bb in AUM under their independent RIA firms.

The company faced increased regulation and competitive pressure from larger more well capitalized competitors like LPL and Raymond James. Their technology stack was extremely fragmented utilizing a combination of custodian provided data services, technology vendors and manual spreadsheets.
The increased regulation mandated that Smith & Co surveil the RIA’s advisory business and activity in addition to the brokerage activity. Up until that point, the company had not found a satisfactory solution in which was well integrated, cost effective and robust enough for them to streamline their business processes and meet their compliance obligations.

Omniscient worked with Smith & Co to provide these key services:

  1. Integrated enterprise technology – the Omniscient platform, which integrates
    1. Customer contact Information
    2. Calendar management
    3. Document management
    4. Workflow management
    5. Investment portfolio viewing
    6. Transaction reviewing
    7. Performance reporting
    8. Email hosting and retention
  2. Operational back office support

This solution set generated significant operational and technological efficiencies as well as reduces the company’s dependence on a fragmented technology stack. A major benefit to the company was the ability to see all customer assets across multiple custodial environments and under different registrations (including their RIA clients) in a single view to ease the compliance workload. The company experienced significant cost reductions due to improved automation and outsourcing, and increased their profit margins, allowing the company to better meet its compliance obligations.