Magazine article American Banker

Bank, Accounting Firm to Develop Investment Service for the Rich

Magazine article American Banker

Bank, Accounting Firm to Develop Investment Service for the Rich

Article excerpt

By WINOKUR, CHERYL

A $4.1 billion-asset banking company in Illinois has partnered with a national accounting firm to provide wealthy clients with more extensive investment services.

The investment management unit of Amcore Financial Inc. of Rockford is working with McGladrey & Pullen LLP, New York, to create a wealth management service that combines estate, tax, and retirement planning with asset management.

Amcore and McGladrey & Pullen would identify potential clients with $1 million or more to invest and propose the program to them.

Clients who are interested would meet with a representative from each company, who would gather financial information and determine needs.

Then the companies would team up to design a comprehensive wealth management plan.

"We can't be all things to all people. What we want to do is integrate different professional skills on behalf of the client," said Alan W. Kennebeck, chairman of Investors Management Group, the banking company's registered investment adviser. Investors Management has more than $4 billion of assets under management.

Formalized referral relationships can be cost-effective, observers said, particularly for smaller institutions that cannot offer services in-house.

It is expensive for banks to run these programs, and "more and more accounting firms are competing with banks anyway," said Michael P. Kostoff, executive director of VIP Forum, a research firm in Washington that serves the trust and investment management industry. …

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