has abstract
| - A turnkey asset management program (TAMP) allows independent financial advisors, typically fiduciaries, to outsource the management of some or all of their clients' assets. More recently, Certified public accountants, law firms and banks also are using them to enter the financial advice marketplace. With a TAMP, financial advisors gain access to managed account services that allow them to offload time-consuming functions, such as research, portfolio construction, rebalancing, reconciliation, performance reporting, and tax optimization and reporting, which allows them to focus on clients' personal financial needs and concerns TAMPs are a form of fee-account, which charge fees based on a percentage of the total assets managed in the program. TAMPs appeal to independent financial advisors who are building a fee-only business, because they can avoid the cost of building their own fee-accounts platform and can implement a TAMP in about 90 days, instead of the year or longer required to develop the same capabilities in-house. TAMPs help independent advisors avoid employee hiring and payroll costs related to internal administration and research, which for a modest program requiring a staff of 8–10 employees can typically cost $1 million per year in ongoing overhead.Because TAMPs serve financial advisors, individual retail investors are not able to directly invest their assets in a TAMP. (en)
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