Riskalyze has added new functionality and workflows as upgrades to its Riskalyze Select and Elite products to help advisors and wealth management firms comply with the Securities and Exchange Commission’s Regulation Best Interest, part of the agency’s four-pronged advice standards package.
Aaron Klein, Riskalyze’s CEO, said in a statement Monday that while the “vast majority” of advisors and wealth managers that Riskalyze serves are already compliant with most of Reg BI, “their use of Riskalyze puts them on third base when it comes to complying with the toughest part of the rule — the standard of care.”
Riskalyze explains that the new functionality gives advisors the ability to assess client risk tolerance, build a proposal through a proprietary Reg BI-compliant workflow, attach and document the delivery of the Customer Relationship Summary, or Form CRS, with those proposals, implement them via Trading Automation, and give home offices visibility into the process with a configurable enterprise dashboard.
According to the firm, the new enhancements aid wealth managers’ compliance with the advice-standards package by offering:
Documentation: offers a built-in ability to integrate Form CRS into proposals, allowing wealth management enterprises to easily document advisor delivery and compliance.
Care: Riskalyze helps advisors review how fees and expenses are accounted for in portfolio recommendations, thereby ensuring that client needs are put first.
Conflicts of Interest: Wealth managers can establish white/blacklists in the Riskalyze proposal engine and allow advisors to be transparent with clients by building a custom tool that displays fee structure, risk tolerance and expense ratios for both a current and proposed portfolio in one report.
Compliance and Monitoring: Wealth managers can monitor ongoing compliance and alignment of investment objectives with client proposals and portfolios. Supervision teams can now search for risk alignment on a sub-asset class lens and account for the risk of different product types including real estate investment trusts, nontraded REITs, bonds, structured notes, business development companies, fixed annuities and variable annuities, and all U.S. stocks, ETFs and mutual funds.