The 529 space has gotten that much tighter. Bisys Investment Services Group
is entering the fray, Jylanne Dunne, executive vice president of Bisys Fund Service, told the MutualFundWire.com. And that's not all. The firm will be providing administrative support for Bank One
, which provides services for the State of Indiana's 529 plan.
According to statistics from the firms, that plan has approximately 8,000 participants and $47 million in assets.
"This agreement is just the start. We are planning on offering a whole suite of 529 products and services," Dunne reported. "We see this as a fast growing business. We have a new product team in place that has a strong knowledge of all the legal, regulatory, and tax implications of 529 plans. So, we can work with asset managers who may not have as strong a background in these areas. There is plenty of opportunity in this marketplace. There are a couple of states now looking at their current products. There is room for a fully bundled 529 service."
Dunne further noted that Bisys is interested in employer-sponsored 529 plans and that there are opportunities to cross-sell it with its other products it offers companies, such as payroll service.
Bisys is deploying its systems and other resources that it uses for other administrative support services -- such as mutual funds, ETFs, and separate accounts -- for this project. "Our agreement with One Group Administrative Services is a strategic milestone for BISYS since it marks our entrance into a dynamic new segment of the financial services industry, and demonstrates the strength and functionality of the accounting platform we offer to support the complex requirements of 529 college savings plans," opined Bill Tomko, president of the unit at Bisys.
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