Penson upgrade

Discussion in 'Retail Brokers' started by Surprise, Nov 8, 2011.

  1. Surprise

    Surprise

    I received this email from Choicetrade few weeks ago , is this has anything to do with Penson financial issues ?

    "
    Our clearing firm, Penson Financial Services, will be upgrading to the new Broadridge-powered Brokerage Processing Services (“BPS”) on November 14, 2011. The new services will improve our processing and reporting capabilities. There will be no action required on your part when this conversion takes place, but you should be especially vigilant if you prefer to mail checks to fund your brokerage account (there is a new address) or if you use check-writing or debit card services (those will be replaced).
    As part of this change-over, you will be assigned a new account number on your ChoiceTrade account. This will be important when referring your account when making customer service inquiries or, in certain instances, where you have set up automated check-writing services with another bank source referring your brokerage account number.
    After the upgrade takes place, you will have to remember your new account number. You will see this account number prominently displayed on the header of the Web site.
    Some other important changes to keep in mind:
    New Address for Check Deposits
    Effective Monday, November 14, 2011; check deposits should be mailed to:
    Penson Financial Services, Inc.
    c/o Ridge Clearing & Outsourcing Solutions
    1981 Marcus Avenue
    Lake Success, NY 11042
    ATTN: Anita Basdeo
    Check-Writing/Debit Cards
    After the changeover, checks and debit cards will be processed by PNC Bank, NA. Existing checks and debit cards will be automatically replaced so you do not have to ask for replacements. New check and debit cards will be mailed out the first week of November. Instructions regarding the usage of the new check and debit cards, as well as destruction of the old will be included in the delivery package.
    The current debit card will no longer be useable as of 11:59 PM, on Friday, November 11, 2011. Debit card users may begin to use the new debit card on Saturday, November 12, 2011.

    Outstanding (older) customer checks will be honored for thirty days after the conversion. After thirty days, checks presented for payment will be returned “account closed”.
    If you currently utilize check-writing and/or debit cards with our ChoiceTrade account, you will receive a new checkbook and/or debit card. Please destroy your current checkbook and/or debit card once you receive the new ones.
    We will send a reminder email the week of November 7th regarding the Broadridge upgrade.
    If you have any further questions concerning these updates; please do not hesitate to contact ChoiceTrade at (877) 731-9114, or email us at service@choicetrade.com.
    We have already planned some great upgrades to our site as a result of this change-over.
    Thank you.
    The ChoiceTrade Team

    "
     
  2. ASE1245

    ASE1245

    To improve Penson's Services, they bought this company. This is an upgrade for Penson clients. Nothing bad. They are alerting you because your account will have changes.
     
  3. Surprise

    Surprise

  4. ASE1245

    ASE1245

  5. Surprise

    Surprise

    not exactly its an outsourcing agreement ...
     
  6. ASE1245

    ASE1245

    OK..To be more accurate, Penson bought Ridge Clearing & Outsourcing Solutions, a subsidiary of Broadridge.

    http://www.broadridge-ir.com/ne/br062810.htm
     
  7. You have a reading comprehension problem.

    Penson did not buy Ridge Clearing & Outsourcing Solutions. Penson only bought "the contracts of substantially all of the securities clearing clients of its subsidiary, Ridge Clearing & Outsourcing Solutions, Inc."

    Penson then entered into an 11 year outsourcing agreement to use Broadridge software.

    "In addition, Broadridge announced the execution of an 11-year global outsourcing services contract to provide securities processing and back-office support services to PFSI. The outsourcing services contract includes operations support and turn-key processing services for the securities clearing client contracts acquired by PFSI from Broadridge as well as PFSI’s existing securities clearing clients. PFSI will utilize Broadridge’s technology platform and staff to service the acquired clients and PFSI expects to convert its existing clients to Broadridge’s platform during 2011. Broadridge expects the global outsourcing services contract to generate approximately $50 to $55 million in annual revenue when PFSI’s clients are fully converted onto Broadridge’s securities processing platform."