We are pleased to announce an upcoming enhancement to our brokerage platform: the introduction of ESI’s Bank Deposit Sweep Program (BDSP).
The primary purpose of this enhancement is to provide the added security of FDIC-insured bank deposits while keeping client cash readily accessible for investments, withdrawals, and other account activity. The program is designed to prioritize the safety and availability of client cash—it is not intended to serve as a high-yield investment solution.
As part of this change, we are updating the way uninvested cash is managed in eligible brokerage accounts. Instead of automatically sweeping cash into a money market fund, uninvested cash balances will be held in FDIC-insured bank deposits through our Bank Deposit Sweep Program.
What You Should Know
- Uninvested cash in eligible accounts will be held in FDIC-insured bank deposits rather than a money market sweep.
- The program is designed to help protect client cash while maintaining convenient access to those funds.
- Existing client accounts will automatically transition as part of the implementation process, either through drain and fill or full conversion, depending on the account type. See below for additional details.
- No action is required from financial professionals or advisors at this time.
Resources Available Now
To help you become familiar with the program and prepare for client conversations, we encourage you to review the following resources:
- FAQ: Click here.
- Webinar: Join us on July 8 for an overview of the Bank Deposit Sweep Program, implementation timeline, and financial professional/advisor Q&A. Register here.
- Additional Resources will be shared in the coming weeks.
What’s Next
July 15
- The Bank Deposit Sweep Program will become the default and only cash sweep option for newly opened eligible brokerage accounts.
August 3
- Eligible existing clients will receive advance communication explaining the upcoming change and what they can expect. This letter will be mailed on 8/3.
September 15
- Existing eligible accounts will begin transitioning to the Bank Deposit Sweep Program.
- Certain accounts (specifically, non-managed brokerage accounts and Advisor as PM Illuminations accounts) will transition using a “drain and fill” approach, which allows existing money market sweep balances to remain available for trading and distributions, while all new cash activity is directed to the Bank Deposit Sweep Program.
- This approach is designed to provide a seamless transition while maintaining uninterrupted access to available cash throughout the transition. Additional details are available in the FAQ.
Throughout the rollout, ESI will continue to provide updates and additional resources to support you and your clients.
Our goal is to make this enhancement as seamless as possible while continuing to provide solutions that strengthen the security and accessibility of client cash.
If you have questions, please review the FAQ or join us for the July 8 webinar.
Thank you for your continued partnership.
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