By Bryan Bashaw
Contrary to initial speculation, it looks as though the Department of Labor (DOL) fiduciary rule will continue to be enforced under the new U.S. administration. This gives an advantage to wealth managers that operate as a fiduciary.
When planning how to service investors going forward, firms must take into account:
- Up-and-coming fintech companies that are taking a fiduciary approach to advising clients
- Legacy firms that have already made changes to processes and procedures to fulfill fiduciary requirements
- Investors who are better informed about the services they procure from investment managers
Whether or not you think the DOA rule will last, providing a fiduciary level of care when advising clients on their retirement assets has become the best practice. Historically, systems with limited technological capabilities prevented managers from acting as fiduciaries; the manual burden of providing such a standard was simply not feasible, unless advising clients with substantial assets.
The technology available today is leaps and bounds ahead of where it was in the past. Systems such as the Global Wealth Platform from SS&C provide much more functionality, which is paramount to providing a fiduciary level of standard.
With the Global Wealth Platform, data aggregation allows advisors to view their client’s holistic situation by pulling in information on held-away assets. Compliance is managed in an automated rules-based fashion where restricted securities and the investment policy statement are taken into account when modeling a portfolio and creating the asset allocation. Client reporting is done on-demand, seamlessly pulling relevant data into a meaningful client summary.
Regardless of the status of the DOA fiduciary rule, technology allows wealth managers to provide a better level of service which ultimately attracts advisor talent and clients. For more information on how SS&C can help your organization, contact us at 1-800-234-0556 or firstname.lastname@example.org.