A provider of technology solutions for registered advisors and independent brokers is seeing more financial firms inquire about developing in-house robo solutions to address the needs of low-account balance IRA accounts.
In a call with analysts, Judson Bergman, CEO of technology-based portfolio and practice management provider Envestnet, said the finalization of the Department of Labor’s fiduciary rule has led to mounting interest from clients and prospects “looking to digitize a solution which would comply with the new rules” that will allow them to continue to service lower IRA account balances in a “profitable way.”
The rule’s Best Interest Contract Exemption is expected to encourage advisors to IRAs that are compensated on commission-based sales of investments to move to a fee-based model of compensation.
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Nick Thornton
Nick Thornton is a financial writer covering retirement and health care issues for BenefitsPRO and ALM Media. He greatly enjoys learning from the vast minds in the legal, academic, advisory and money management communities when covering the retirement space. He's also written on international marketing trends, financial institution risk management, defense and energy issues, the restaurant industry in New York City, surfing, cigars, rum, travel, and fishing. When not writing, he's pushing into some land or water.
