CapitalRock Expands Analysis for Rollover and Exchange Solution

The firm's rollover/exchange analysis will consider more plan types, including 401(k), 403(b), 457, defined benefit plans and more.  

In an effort to create simpler and consolidated steps for advisers when completing rollovers or exchanges under the impartial conduct standard, CapitalRock has amplified its analysis for RightBRIDGE Product Profiler, their rollover/exchange module.


Along with reducing steps taken to complete rollovers or exchanges, CapitalRock says this surplus of analysis can help in eradicating manual re-entries of data.


The Product Profiler, created by CapitalRock to evaluate if a 401(k) rollover is suitable for a client, is based on quantitative and qualitative questions on current fees, employer contributions and other features. The module then utilizes a scoring methodology to regulate whether a rollover is fitting for a client or not. During Q4 of 2017, the solution was stretched to incorporate several 401(k) rollovers in the analysis. Benchmarking average fees based on the size of the 401(k) and investment offerings were also implemented, according to CapitalRock.

The firm says it is now offering the rollover/exchange analysis to additional retirement plans, including 401(k), 403(b), 457, individual retirement accounts (IRAs), IRA-annuity, nonqualified annuity and defined benefit (DB) plans. This extension comes after numerous current clients from CapitalRock requested for an expansion towards other plans.


“After completing the first phase of the Product Profiler development we recognized the need to expand the rollover/exchange analysis to include other qualified and retirement plans. With the impartial conduct standard in place it is necessary to analyze and document the rollover/exchange process. Most firms are currently using a paper-based form to meet this requirement. By expanding the Product Profiler analysis to include additional plan types we can assist and automate much of the current process,” says John Hyde, president and CEO of CapitalRock. “Now that we have implemented the Product Profiler at more than a dozen broker dealers we have received requests from our current clients to expand the functionality for additional plans.”


According to CapitalRock, this added analysis will unfold in a two-step process, the first with a short set of questions determining if a more detailed examination is needed, and will be scored using color indicators. Should the indicator turn red, no additional analysis is needed. However, plans scoring a green or yellow indicator will require further detailed analysis on comparing features and fees.


“We recognize that the most difficult part of a rollover or exchange is comparing features and fees,” says Brian Hendricks, senior vice president of Operations at CapitalRock. “Researching and finding current plan details is often difficult. If a plan is determined to be a valid candidate for a rollover/exchange then we move on to the second step in the process and get more detailed information on both the current plan and the proposed plan/product.”


Aside from the RightBRIDGE Product Profiler and the RightBRIDGE scoring engine, CapitalRock plans to utilize extra resources such as their ReasonText, a feature explaining why rollovers/exchanges would benefit or hurt certain plans. If extended analysis on specific product selection is needed, the RightBRIDGE Annuity Wizard or Investment Wizard tools may be implemented, says CapitalRock.


The additional evaluation will be completed in the RightBRIDGE solution at the end of Q1 2018.