Products October 25, 2016

PCS Launches Rollover Tool to Comply with DOL Fiduciary Rule

The tool is designed to help advisers seamlessly transition IRAs from commission status to fee based in order to comply with the DOL’s Fiduciary Rule.
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Retirement platform provider PCS is introducing an adviser-initiated rollover system that is fully compliant with the Department of Labor (DOL)’s Fiduciary Rule, according to the firm. The financial services industry is looking at about $4 trillion in commission-based individual retirement accounts (IRA)s that will need to be rolled over into new, complaint structures, PCS explains.

With the firm’s new tool, advisers can capture rollovers out of qualified plans and transition existing IRAs from commissions-based to fee arrangements, thereby supporting DOL compliance.

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“Come April, 2017, every retirement-plan enterprise will have to reassess its procedures,” says PCS CEO Mark Klein. “Advisers, home offices, plan sponsors—they are all feeling the pressure. Of the $7.3 trillion currently in IRAs, $4 trillion is in commission-based accounts. We anticipate that most (if not all) of these accounts will transition to level fee arrangements. Whether handled by independent RIAs [registered investment advisers], advisers registered with broker/dealers, or hybrid advisers, every account will have to be reviewed and converted in accordance with the DOL mandates, as necessary.”

PCS says its mobile-ready software maintains all necessary documentation to determine clients’ best interests, and ensures investor acknowledgement of required disclosures. It’s designed to foster account aggregation with a built-in Monte Carlo analysis capability. The rollover tool also offers a customizable risk-tolerance questionnaire, built-in home office compliance monitoring, and fee approval or set auto-approval based on approved criteria. Where applicable, the tool screen scrapes existing investments such as current positions and fees, avoiding input of required comparison data.

Advisers can also initiate the rollover tool via text or email with “off the street” IRA holders.

“Since PCS was founded in 2001, our express purpose has been to offer advisers a conflict-free, full-fee-disclosure, no-hidden-agenda retirement platform,” says Klein. “With the anticipated cost and liability ramifications of the DOL regulations, we are providing advisers with a comprehensive rollover tool enabling them to remain compliant by quickly addressing the DOL-level fee fiduciary requirements.”

PCS will host a webinar about the rollover tool on November 2 at 1 p.m. (Eastern Time). Registration is available here. 

Products October 25, 2016

Envestnet to Enhance MoneyGuidePro in Light of DOL Rule

The MoneyGuidePro suite of services aims to streamline the process of determining clients’ best interest as defined by the DOL.
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Envestnet has announced that it will enhance the level of integration within MoneyGuidePro, offering advisers scalable tools to gather the information they need to determine clients’ best interests based on risk tolerance, investment objectives and specific retirement needs. 

These variables define what a client’s best interest is according to the standards set out by the Department of Labor (DOL) fiduciary rule.

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With the expansion, MoneyGuide Pro, Best Interest Scout and myMoneyGuide by PIEtech will be available to Envestnet advisers and enterprises. These solutions can confirm if the proper information is available to evaluate the need for a best interest contract (BIC), and align advice to comply with the new regulations from the DOL’s fiduciary rule, Envestnet explains. Advisers will also be able to record and archive data obtained through Best Interest Scout and myMoneyGuide.

“The post-DOL landscape will be a very different one for members of the wealth management industry, and advisers have their hands full preparing for the new rules to take effect,” says Kevin Knull, president of PIEtech. “Our ongoing integration with Envestnet can help advisers seamlessly make necessary adjustments in their practices so they can both strengthen engagement with clients and ensure all advice they offer is in each client’s best interest.”

The MoneyGuidePro offerings are also available to registered-investment advisers (RIAs) leveraging Envestnet Tamarac’s Advisor View and its client portal. RIAs who believe they need more information about a client’s risk tolerance, investment objectives and retirement needs to determine best interest can send an email asking the client to log into Best Interest Scout through the Advisor View client portal. When the client logs in, Tamarac will import known client data into Best Interest Scout, which will ask the client to enter the unknown information and send the completed questionnaire back to the adviser.

Best Interest Scout’s scalable client discovery process, integrated with Envestnet data aggregation, will streamline data transfer into Envestnet’s core platform. The firm notes it is critical to have a thorough understanding of a client’s financial situation that goes beyond a risk questionnaire and also takes into account factors such as market timing, liquidity, employment, and current health conditions that could create variables to a client’s long-term investment horizon.

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