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.
“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.