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.
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.