InvestCloud Solves DOL Issues with Digital Advice Platform

By Colin Close, President InvestCloud

Is your broker-dealer ready for the Department of Labor’s new Fiduciary Standard?

You Can Be With InvestCloud’s Digital Advice Platform  

  • New DOL ruling requires that many retirement accounts now be managed using a fiduciary standard.
  • Millions of clients and trillions in retirement assets will be affected.
  • Firms need a cost effective way to align advice and client service to meet fiduciary standards.
  • InvestCloud allows firms to replicate the low-cost brokerage experience with a modern digital advice platform.

Millions of brokerage retirement accounts must now be advised using the fiduciary standard. Short-term impact to registered representatives and broker-dealers will be the migration of these assets into a fee-for-advice model.  The Best-Interest-Contract Exemption (BICE) is the alternative which requires additional client disclosures and heightened compliance oversight. InvestCloud’s Digital Advice Platform is used by hundreds of financial institutions across $1.5 Trillion in assets to automate your client advice, communication, and portfolio management capabilities.

InvestCloud’s Digital Advice Platform is the most customizable, cost-effective, fully integrated digital platform available today.  Our Applet based approach allows firms to scale the delivery of client advice, regardless of service model and account size.  Our proprietary MQMA (Multi-Question, Multi-Answer) risk profiling technology intelligently automates your custom KYC questionnaires, client onboarding, and investment policy statement by intuitively stepping your client through their own custom digital onboarding experience. The result: Client’s self-direct themselves to your own investment strategies and asset allocation models. Your own digital platform, your own service model, your own investment strategies, your own brand…all powered by InvestCloud. Going digital doesn’t mean you can’t be different.

CLIENTS   +    TECHNOLOGY   =    SCALABLE ADVICE AND SERVICE

Old Think
Smaller accounts are charged trading commissions or higher annual fee % due to low profitability and the increased maintenance/education required to service a mass-affluent client.  One service model forced onto all client types and sizes.

Singular Service Model
New Think
Clients individually choose their own level of service based on personal needs and portfolio requirements. Smaller accounts and digital-first clients operationally scale with client on-boarding and model portfolio automation applets with InvestCloud. High net worth clients choose the high-touch service model they demand with digital-first, full-service, and hybrid service models readily available for all types of clients.

Hybrid Service Model.png

 

Clients are demanding digital services and cheaper advice models. High performance firms are leveraging InvestCloud’s Digital Advice Platform to quickly scale custom service models and meet the service demands for clients of all types and sizes.  The market is quickly responding and digital innovators are surfacing as competitive leaders. Grow your AUM by offering the service model your clients are asking for.

Cross the digital divide with InvestCloud’s fully integrated Digital Advice Platform.

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