A TAMP is an outside company an advisor hires to run client portfolios, supplying the investment models, trading and reporting so the advisor can spend more time on planning.
Your account usually still sits at a qualified custodian in your name. The TAMP may manage it as a sub-adviser or run the managed account program the advisor places you in. SEC rules for programs like these expect each account to be managed for that client's situation, with a chance to set reasonable restrictions and at least a yearly check on whether anything has changed.
The cost can be bundled into what you pay the advisor or added on top as a separate platform or manager fee, plus the expense ratios of the funds used. A wrap program's brochure has to show the share of the fee paid to portfolio managers.
Using a TAMP isn't good or bad in itself. What matters is the total you pay and whether your portfolio still reflects your own taxes, goals and restrictions.
How to check
Read Items 4 and 5 of the firm's Form ADV Part 2A brochure, and Item 10.D if it recommends other advisers. Ask for your total yearly cost in dollars, including any manager or platform fee and fund expenses.
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