Did you hear that Stephens Inc. has given pink slips to dozens or scores of employees after outsourcing a number of “back office” functions?
Whispers heard that too. So we asked whether it was true.
The Little Rock investment bank entered into a “clearing arrangement” with Pershing LLC, a subsidiary of BNY Mellon, effective Nov. 15. Customers were notified of this, as was the U.S. Securities & Exchange Commission.
Here, specifically, is what Stephens told the SEC in October: “Under this new clearing arrangement, Pershing will serve as the clearing broker-dealer for Stephens and will assume certain operational service for Stephens such as trade execution, settlement of transactions and other services. Pershing will also become the custodian of investment advisory accounts of Stephens clients under this arrangement.”
Handing off all that work to a third party is the very sort of thing that typically results in staff reductions. But Stephens, in response to our inquiry, neither confirmed nor denied layoffs.
Instead, a statement issued last week said it would be “premature at this point to discuss its impact on personnel.”