Products December 10, 2018

Envestnet Enhances Wealth Management Program

Adviser/client communication capabilities have been improved, as well as the ability for clients to look at their complete financial picture.

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Envestment has made several enhancements to its wealth management platform.

The platform is now integrated with SaleMove so advisers can communicate more easily with clients. The connectivity with Yodlee has also been enhanced so that clients can look into their full financial picture.

The wealth management platform now also has advanced financial planning capabilities. Plan probability can now also be determined using the traditional method and the weighted priority of goal probabilities. With the addition of the equity compensation feature, advisers will also now have the ability to model different share exercise and sale options to incorporate into plan scenarios with Advanced Logix.

Envestnet’s Quarterly Performance Reports (QPR) can now be customized to incorporate other firm documents alongside the reports selected in the template.

“This latest round of enhancements to the Envestnet platform delivers more meaningful and powerful functionality for our users and their clients,” says Blake Wood, senior vice president, director of product strategy at Envestnet. “By regularly reviewing and updating our advanced technology offerings, Envestnet is committed to providing enterprises and advisers with the necessary tools to better understand their clients’ financial picture.”

Compliance December 10, 2018

Settlement Reached in Franklin Templeton Self-Dealing Lawsuit

A federal district court judge recently moved forward most claims in the case, and a trial date was set for January 14, 2019.

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In a case alleging self-dealing in Franklin Templeton’s 401(k) plan, the parties have reached an agreement in principle to settle the case.

No details of the settlement agreement have been revealed since, according to a notice in the case’s docket, “Plaintiffs anticipate needing 60 days to file a motion for preliminary approval.” The trial in the case was set to begin January 14, 2019.

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Although she recently moved forward most claims in the lawsuit against Franklin Templeton Resources, U.S. District Judge Claudia Wilken of the U.S. District Court for the Northern District of California granted the firm’s cross-motion for partial summary judgment on the breach of fiduciary duty claim as to the reasonableness of Franklin Templeton’s 401(k) recordkeeping fees.

Wilkin found there is a triable issue regarding whether the defendants’ alleged prohibited transactions fall under Prohibited Transaction Exemption (PTE) 77-3. The suit alleges that defendants “breached their fiduciary duties by causing the plan to invest in funds offered and managed by Franklin Templeton (Franklin funds), when better-performing and lower-cost funds were available.” The lead plaintiff further alleges that defendants were “motivated to cause the plan to invest in Franklin funds to benefit Franklin Templeton’s investment management business.” Further, the suit alleges that defendants “offered the plan inferior arrangements compared to that offered to non-captive plans, and, in so doing, engaged in prohibited transactions.”

She also denied the defendants’ cross-motion for partial summary judgment on the plaintiff’s breach of fiduciary duty claim as to his stable value fund theory, finding there is a disputed issue of material fact as to whether the defendants fulfilled their fiduciary duty in adequately considering their investment options.

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