Broadridge Financial Solutions

Broadridge was founded in 1962 as ADP Brokerage Services Group, a business unit of the American payroll processing company Automatic Data Processing (ADP). Operating as ADP's shareholder communications division,{{Rp|27}} it initially served one client by processing an average of 300 trades per night.

1970s legislation in the United States changed the industry by mandating two new processes for securities and their transfer: immobilization and dematerialization. These processes required physical stock certificates and other paper securities to be kept in bulk by intermediaries, with the sale and ownership of securities recorded through chains of transaction records instead of possession of paper certificates. These changes increased securities trading and led to a rapid rise in stock ownership, and also had the effect of putting intermediaries between companies and their shareholders.{{Cite report|url=https://archive.org/stream/pdfy-hhRRYtGYLkVNIM7P/The%20Rise%20and%20Effects%20of%20the%20Indirect%20Holding%20System%20How%20Corporate%20America%20Ceded%20its%20Shareholders%20to%20Intermediaries#page/n0/mode/2up|title=The Rise and Effects of the Indirect Holding System|last=Donald|first=David C.|date=18 September 2007|publisher=Institute for Law and Finance|volume=68|access-date=18 July 2018|via=Internet Archive (PDFy Mirrors)|series=Working Paper Series}}{{Rp|1–2}} Before the new laws, banks and brokers had typically maintained in-house proxy departments to manage the shareholder voting process.{{Cite book|url=https://books.google.com/books?id=iDIFwLyk4C8C|title=A Practical Guide to SEC Proxy and Compensation Rules|last1=Wilcox|first1=John C.|last2=Niels C.|first2=Holch|publisher=Wolters Kluwer|year=2018|isbn=9780735598959|editor-last=Goodman|editor-first=Amy L.|edition=5th|location=New York|pages=11–16, 17|chapter=Chapter 11: "Street Name" Registration & the Proxy Solicitation Process|oclc=1003678941|editor-last2=Olson|editor-first2=John F.|editor-last3=Fontenot|editor-first3=Lisa A.|url-access=limited|via=Google Books}} Note: Source includes specific details on transfer of proxy authority, too detailed to include here, and a generic process rather than company-specific. The need for shareholders to vote by proxy through intermediaries, however, created a new industry to manage that voting process,{{Rp|1–2,48}} which remained in place even after electronic certificates eliminated the need for intermediaries.{{Rp|1–2}} ADP Brokerage Services Group operated as one of those intermediaries, and by the mid-1990s, Automatic Data Processing dominated the proxy voting and shareholder communications services industry.{{Rp|48}}

At the end of March, 2007, ADP spun-out the entirety of their shareholder communications activities, resulting in the formation of Broadridge Financial Solutions.{{Rp|27}} Operating as an independent public company, Broadridge was headquartered in Lake Success, New York with Rich Daly serving as CEO. Broadridge facilitated its first virtual annual meeting, for Intel Corp, in 2009. In 2010, the company processed about 350 billion shares for its clients.{{Cite report|url=https://archive.org/stream/gov.gpo.fdsys.CHRG-113hhrg81762/CHRG-113hhrg81762#page/n0/mode/2up|title=Examining the Market Power and Impact of Proxy Advisory Firms|last=Subcommittee on Capital Markets and Government Sponsored Enterprises|first=Committee on Financial Services|date=5 June 2013|publisher=Government Publishing Office|issue=Serial No. 113-27|access-date=18 July 2018|via=Internet Archive (U.S. Congressional Hearings)}}{{Rp|2}} Congress evaluated aspects of corporate governance, including shareholder communications and proxy voting, in the wake of the financial crisis of 2007–2008.{{Rp|1–2}} In 2010 a report submitted to the House Committee on Financial Services by a coalition headed by Business Roundtable noted the near monopoly position of Broadridge in handling proxy voting.{{Cite report|url=https://archive.org/stream/gov.gpo.fdsys.CHRG-111hhrg57743/CHRG-111hhrg57743#page/n0/mode/2up|title=Corporate Governance and Shareholder Empowerment (Hearing)|last=Subcommittee on Capital Markets Insurance and Government Sponsored Enterprises|first=Committee on Financial Services|date=21 April 2010|publisher=Government Publishing Office|issue=Serial No. 111–125|volume=One Hundred Eleventh Congress, Second Session|page=249|access-date=18 July 2018|via=Internet Archive (U.S. Congressional Hearings)}} Appears under heading "The Lack of Competition in Proxy Processing Services".{{rp|249}} Broadridge had retained its predominant position in the proxy processing market by 2013.{{Rp|17}}

In 2016, it facilitated virtual annual meetings for 154 companies, an increase of 71% from the year prior. Also in 2016, Broadridge acquired Spence Johnson, an institutional financial flow data intelligence firm.{{cite news|url=http://www.pionline.com/article/20170711/ONLINE/170719939/broadridge-financial-services-acquires-spence-johnson#|title=Broadridge Financial Services acquires Spence Johnson|last1=Baker|first1=Sophie|date=11 July 2017|newspaper=Pensions & Investments|access-date=17 July 2018|publisher=Crain Communications|location=United States}} In the summer of 2016, Broadridge acquired the North America Customer Communications (NACC) unit of DST Systems, a Kansas City-based business services provider, which provided the company with addressing information for about 75% of all public company shareholders in the United States and Canada. Later in 2016, Broadridge bought M&O Systems, a small Manhattan-based financial services company.{{cite news|url=https://www.newsday.com/business/broadridge-sales-soar-following-merger-profits-flat-1.12591050|title=Broadridge sales soar following merger; profits up slightly|last1=Madore|first1=James T.|date=9 November 2016|newspaper=Newsday|access-date=17 July 2018}} In 2017, the company had 10,000 employees.{{cite web |url=http://www.broadridge-ir.com/~/media/Files/B/Broadridge-IR/annual-reports/ar-2017.pdf |title=Annual Report 2017 |date=2017 |publisher=Broadridge Financial Solutions |access-date=17 July 2018}}{{self-published source|date=July 2018}} In a 2018 letter to the SEC, Broadridge stated its mailings reached 140 million investor accounts. In 2018, UBS Group AG's Wealth Management Americas unit became the first large client to begin using Broadridge's new software platform for "front- and back-office tasks, like opening client accounts, trade routing and order management and asset servicing."

On January 2, 2019, Tim Gokey succeeded Rich Daly as chief executive officer. Daly became Executive Chairman of the Board. In November 2019, Broadridge acquired ClearStructure Financial Technology, which provided portfolio management solutions for the private debt markets.{{cite web |url=https://www.broadridge.com/press-release/2019/broadridge-acquires-clearstructure |title=Broadridge Expands Asset Management Technology Suite With Acquisition of ClearStructure |date=November 20, 2019|publisher=Broadridge Financial Solutions |access-date=4 December 2019}} Broadridge acquired FundsLibrary, which specializes in fund document and data dissemination in Europe, in March 2020. It was combined with the Broadridge brand FundAssist and renamed Broadridge Fund Communication Solutions.{{Cite press release|url=https://www.prnewswire.com/news-releases/broadridge-completes-acquisition-of-fundslibrary-301013540.html|title=Broadridge Completes Acquisition of FundsLibrary|last=Inc|first=Broadridge Financial Solutions|website=www.prnewswire.com|language=en|access-date=2020-03-03}} In 2021, it had assets of US$8.119 billion, equity of $1.809 billion, net income of $547 million, operating income of $678 million, and revenue of $4.993 billion.{{cite web|title=Broadridge Financial Solutions, Inc. 2021 Annual Report |url=https://s1.q4cdn.com/204858996/files/doc_financials/2021/ar/Broadridge-2021-Annual-Report-Final.pdf |website=s1.q4cdn.com |access-date=7 October 2021|date=30 June 2021}}

The company agreed in 2021 to acquire the Sweden-based Itiviti from Nordic Capital for $2.5 billion. In 2021, Broadridge announced that RBC Wealth Management-U.S. would be its second client utilizing its new advisor technology platform for wealth management. In September 2022, Cetera became the first company to use Broadridge's Wealth InFocus communications platform, which focused on communications related to wealth management.

After Broadridge began testing the use of blockchain for proxy voting in 2018, by 2023, companies such as UBS and Société Générale were using Broadridge's VMWare Blockchain distributed ledger software to facilitate repurchase agreements. In 2023 Broadridge stated it had around 1,100 clients who were brokers, and that it provided proxy services for around 80% of outstanding shares in the United States. In June 2023, LTX, a corporate bond trading platform owned by Broadridge, launched BondGPT, a chatbot focused on bonds and utilizing OpenAI's GPT-4. In 2024, Broadridge ranked #3 on the IDC Fintech Rankings.{{cite web | url=https://www.idc.com/getdoc.jsp?containerId=prUS52580324 | title=Fiserv and Microsoft Top the 2024 IDC FinTech Rankings FinTech Top 100 and Enterprise Top 50; VeriPark Named Overall Real Results Winner }} Broadridge released its Sentry software, a loan portfolio management platform, in 2024, at which point specific offerings included “new mutual funds, ETFs, managed accounts, app-based trading, and zero-commission trading." It had also enabled “pass-through voting,” allowing shareholders to do proxy votes directly rather than through an investment manager, and a mobile app for proxy voting at annual meetings.

According to analysts at Evercore ISI, “Broadridge has a long history of successful tuck-in acquisitions," and between 2007 and 2018, the company made over 30 acquisitions in total. Among the largest were:

• 2016 - The company acquired Spence Johnson, an institutional financial flow data intelligence firm.

• 2016 - Broadridge acquired the North America Customer Communications (NACC) unit of DST Systems, a business services provider.

• 2016 - Broadridge bought M&O Systems, a financial services company.

• 2019 - Broadridge acquired ClearStructure Financial Technology, which provides portfolio management solutions.

• 2020 - Broadridge acquired FundsLibrary, which specializes in fund document and data dissemination.

• 2021 - Broadridge acquired Itiviti, a capital markets trading technology provider.

The company has 14,000 employees as of 2024.{{Citation |year=2024 |title=About |publisher=Broadridge |url=https://www.broadridge.com/about/ |access-date=November 13, 2024}} In 2024, the CEO was Tim Gokey while Chris Perry served as president. The eleven-member board includes chairman Richard J. Daly, Leslie Brun, Annette Nazareth, Pamela Carter, Robert Deulks, Melvin Flowers, Tim Gokey, Brett Keller, Maura Markus, Eileen Murray, and Amit Zavery.{{Citation|year=2024 |title=Management and Board |publisher=Broadridge |url=https://www.broadridge.com/about/leadership#executive |access-date=November 12, 2024}}

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{{Reflist|refs=

{{Citation |last=Mehta |first=Stephanie |date= January 8, 2024|title=These CEOS aim to make financial services more accessible to consumers |work=Fast Company |publisher=Fast Company |url=https://www.fastcompany.com/91005401/fintech-ceos-broadridge-pagaya-financial-services-accessible-consumers |access-date=November 8, 2024}}

{{Citation |year=2024 |title=History |publisher=Broadridge |url=https://www.broadridge.com/about/history|access-date=November 8, 2024}}

{{Citation |last=Trentmann |first=Nina |date=March 30, 2021 |title=Broadridge CFO Looks to Reduce Debt After $2.5 Billion Deal |publisher=The Wall Street Journal |url=https://www.wsj.com/articles/broadridge-cfo-looks-to-reduce-debt-after-2-5-billion-deal-11617105600|access-date=November 8, 2024}}

{{Citation |last=Darbyshire |first=Madison |date=August 23, 2021 |title=A true monopoly': fee fight reveals heft of Wall Street linchpin Broadridge |publisher=Financial Times|url=https://www.ft.com/content/5f912194-cd4e-424a-8d42-da3a98ca3836 }}

{{Citation |last=Darbyshire |first=Madison |date=October 12, 2023 |title=Broadridge Financial's proxy 'monopoly' faces challenge from start-ups |publisher=The Financial Times |url=https://www.ft.com/content/d2064cbc-11ee-4c21-aff9-4d91450f76fc |access-date=November 13, 2024}}

{{Citation|date=May 8, 2023 |title=Broadridge Now Conducts $70 Billion Of Blockchain Repo Trades Per Day |work=Forbes |url=https://www.forbes.com/sites/digital-assets/2023/05/08/broadridge-now-conducts-70-billion-of-blockchain-repo-trades-per-day/?sh=58ac33602bcc }}

{{cite news | url=https://www.bloomberg.com/news/articles/2024-03-15/wall-street-s-model-portfolio-boom-may-hit-11-trillion-by-2028-broadridge | title=Wall Street's Model-Portfolio Boom May Hit $11 Trillion by 2028 | newspaper=Bloomberg | date=15 March 2024 }}

{{cite web | url=https://www.barrons.com/advisor/articles/broadridge-financial-solutions-rbc-wealth-management-51627515887 | title=RBC Taps Broadridge to Facilitate Digital Platform Overhaul }}

{{cite web | url=https://www.reuters.com/article/idUSKCN1MZ1MM/ | title=UBS signs U.S. Deal with Broadridge for cost-sharing wealth technology | work=Reuters | date=25 October 2018 }}

{{cite web | url=https://www.privatebankerinternational.com/news/broadridge-helps-northwall-capital-to-grow-its-credit-business/ | title=Broadridge helps NorthWall Capital to grow its credit business | date=7 March 2024 }}

{{cite web | url=https://www.businessinsider.com/openai-tool-corporate-bonds-launched-broadridge-fixed-income-2023-6 | title=Generative AI is coming for bond trading, but a massive hurdle still stands in the way of the market digitizing | website=Business Insider }}

{{cite web | url=https://www.bnnbloomberg.ca/broadridge-s-daly-to-step-down-as-ceo-handing-reins-to-gokey-1.1136542 | title=BNN Bloomberg – Canada Business News, TSX Today and Interest Rates }}

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• {{Cite book|url=https://books.google.com/books?id=BhlYAct-dWoC|title=New Paradigms of Gender Inclusivity|last=Kaul|first=Asha|publisher=PHI Learning|year=2012|isbn=9788120345133|editor-last=Kaul|editor-first=Asha|location=New Delhi|chapter=Chapter 2. Ardhanareshwar: Unison of Ultimate Reality|oclc=896478066|quote=Broadridge India, formerly a brokerage services division of Automatic Data Processing (ADP) Inc., began operating as an independent public company in India in March 2007. (opening sentence of chapter abstract)|editor-last2=Singh|editor-first2=Manjari|url-access=limited|via=Google Books}}

• {{Official website|https://www.broadridge.com}}

{{Finance links

| name = Broadridge Financial Solutions, Inc.

| symbol = BR

| sec_cik = 1383312

| reuters = BR.N

| bloomberg = BR:US

| yahoo = BR

| google = BR:NYSE

}}

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Category:Financial services companies established in 2007

Category:Companies listed on the New York Stock Exchange

Category:Business process outsourcing companies

Category:ADP (company)

Category:Companies based in Newark, New Jersey

Category:Corporate spin-offs