With just 11 months until the compliance deadline for Regulation Best Interest — the Securities and Exchange Commission’s new standard of conduct — Chalice Financial Network is rolling out a Reg BI Readiness Platform to help advisors adjust to the new regulatory regime.
Chalice, which delivers services to some 48,000 advisors for a base fee of $99 a month with discounted a la carte charges for specific assistance, says advisors on its platform can now work with two organizations specializing in Reg BI: Kupfer & Associates and NRS.
According to Chalice President Derek Bruton, “Advisors count on us to be opportunistic, to know what’s up in the marketplace and pivot to address their needs. We all knew that [after the vacating of the Labor Department fiduciary rule] something was coming.”
In terms of Kupfer, “We sought out a law firm … that already knows the [associated compliance] problems and … can dive right in and spend time on the solutions,” Bruton explained in an interview.
What about advisors who need a bit more support, like an outsourced COO?
“NRS works that way,” Bruton said. “As compliance and other pressures increase for RIAs, they face the question of outsourcing or insourcing. NRS can serve in that capacity.”
Chalice members, he adds, typically work with $500 million of client assets or less.
“We did get requests [for these compliance services] and wanted to offer more assistance and top-level advice,” the executive explained. “We’re glad to have responded quickly and added it. We are already seeing the fruits of our labor.”