I'm Brad Wales with Transition To RIA (TransitionToRIA.com). This is episode #57 of my question and answer series where I answer RIA related questions I get from advisors just like you.

You’ve likely heard of a TAMP before, but what exactly is it?

The definition of a Turnkey Asset Management Program has expanded to the point where one “TAMP” solution can vary significantly from another “TAMP” solution. So much so that some TAMPs arguably should no longer even call themselves a TAMP at all!

Is a TAMP something you should consider for your practice?

Are you already using a TAMP and don’t even realize it?

In the latest episode of my RIA Question & Answer series I explain: What a TAMP is, the different variations of them, how you can use them in your practice, and how they are priced.

Come take a look!


What I do: At Transition To RIA I help financial advisors understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model.

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What is a TAMP? That is today's question on the Transition To RIA question and answer series. It is question #57.

Hi, I'm Brad Wales with Transition To RIA, where I help you understand everything there is to know about why and how to transition to the RIA model.

If you're not already there, if you head over to TransitionToRIA.com, you'll find all kinds of additional information, including the show notes from today's episode. Again, TransitionToRIA.com.

On today's episode, we're going to talk about what is a TAMP? Which is an acronym for Turnkey Asset Management Program. TAMPs, which were started in the '90s, have expanded greatly to the point where you have to be very careful when talking to someone about a TAMP to know exactly what they’re referring to.

Because there are so many different flavors now of what that means, you have to dive into the details to understand what it is that they are providing. That's what I'm going to explain today is what it is at its core, and then what these different variations are, how they work, and things like that.

A TAMP at its core is a platform that gives you accessibility to some sort of managed money solution. That could be third-party SMA managers, or perhaps third-party created models that you will utilize with your clients.

As a financial advisor, you essentially have two options for how to invest your clients' assets. The value proposition for some RIAs is they do the investments themselves. They have that expertise in-house and the resources in-house to do that. They say, "Part of our value proposition is we invest your money. Here's our philosophy. Here's how we implement it."

Other advisors say, "My core strength is in the relationships and the financial planning and building the business. I rely on third-party experts to provide the actual management of the assets. Part of my role is to oversee those managers, as they say, be the manager of managers, to make sure that the professionals we utilize to invest your assets continue to be the best resources we could provide for you in that regard."

There's no right or wrong on that. That's a personal preference of how you want to run your own firm. But for the advisors that want to access third-party solutions, you need some way to do that. You need to logistically access them, logistically facilitate the trading in the accounts, process the fees, all that. That's essentially what a TAMP is.

A TAMP is a platform that gives you access to these resources. Before TAMPs came along, let's say you are in that second camp where you believe in outsourcing to third-party professional money managers to run the actual investments in the accounts.

Before a TAMP came along, you would have had to go out there and identify and contact different managers that you might want to use. Then to the degree you found managers you liked, you would have to enter into contracts directly with them, you'd have to negotiate fees, coordinate all of the logistics for the facilitation of the trades from a technology perspective, etc.

That's just for one manager you might use. If you wanted to use maybe two, three, four, five different managers with your clients, that was very difficult to do on a one-off basis. Con't....

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