Are You Ready for the Fiduciary Rule?

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The Department of Labor (DoL) Fiduciary Rule is to be phased in from April 10, 2017 to January 1, 2018, and the date is fast approaching for financial professionals who find themselves caught within the new legislature.

The crux of the debate is that the new rule expands the definition of a “fiduciary” in an investment advice role under the Employee Income Security Act of 1974 (ERISA). From April 10th it will include all advisors who work with retirement plans or even provide retirement planning advice, binding them legally and ethically to meet the standards of the status.

Weighing in at over 1,000 pages of legal documentation, the rule will have sweeping effects across the financial advisory sector. But the impact will vary across different types of advisor. Many observers suggest those who work on commissions, such as brokers and insurance agents, will be impacted most.

Legislative context

The DoL’s ruling is aimed at stopping the $17 billion a year the government claims investors waste in excessive fees. The idea is that the new regulation will stop advisers from putting their own interests in earning high commissions and fees, above their clients’ interests in obtaining the best investments at the lowest prices; the definition of fiduciary leaves no room for advisors to conceal any conflicts of interest.

As financial advisors grapple with the ever evolving complexities that develop from one of the largest legal changes to the industry since ERISA, it becomes clear that amongst all the issues, the many challenges can be converged into a single question: how can advisory firms, asset and wealth managers continue to grow within this new landscape? Read More

 

 

Financial Institutions Adopt Applet Approach

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The following is a summary of an article titled ‘Be Modular. A lesson for financial services’ written by Chris Allchin and Matt Austen.  InvestCloud’s Digital Applet Platform was designed from the beginning to provide financial institutions a digital Applet framework which supports this modular thinking for client communications, management, and automation.  The Applet capabilities are used by all types of financial firms, from independent RIAs to the world’s largest banking brands.

To continue reading the full article, click here

InvestCloud Announces Joint Business Relationship with PwC

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InvestCloud, LLC, the world’s largest Digital Applet Platform specifically designed to meet the needs of all types of financial services organizations, today announced that it has entered into a non-exclusive joint business relationship with PwC designed to accelerate adoption and implementation of the InvestCloud Digital Applet Platform. PwC will be a preferred implementation and strategy partner of InvestCloud focused on enterprise delivery and innovative development of new financial applet capabilities.

“InvestCloud has built an innovative and one-of-a-kind digital applet platform leveraged by 660 independent and institutional clients globally with over $1.5 trillion in assets on the platform,” said John Wise, CEO and Co-Founder of InvestCloud.”PwC is one of the largest strategic consulting organizations in the world, and has an excellent track record of connecting scalable innovative solutions like InvestCloud with some of the world’s largest financial brands. We are thrilled to partner with them to support our continued growth across the globe.

Click here to see the full press release.