What You Need to Know
- The new tool is targeted at multi-advisor, large RIA and broker-dealer firms.
- It was developed in response to increased focus by regulators on fee-for-service models.
- Cetera is expected to be the first firm to go live with Deliverables.
AdvicePay launched a new tool on its payment processing platform for advisors that it said Wednesday centralizes compliance reviews of financial plan deliverables to streamline the process and make it more efficient.
The new tool, called Deliverables, enables enterprises to systematically track, report and manage the financial planning deliverables their advisors produce, to ensure quality control and compliant advice recommendations, as well as ensure financial plans are delivered when clients are engaged in project, subscription or retainer financial planning fee models, according to AdvicePay.
Deliverables makes the financial plan review process more efficient by creating a centralized hub and one place to submit all fee-for-service business, AdvicePay said.
Who It’s For
The new tool is targeted at multi-advisor, large RIA and broker-dealer firms — primarily hybrid BD and RIA firms, Michael Kitces, AdvicePay co-founder, told ThinkAdvisor.
Smaller RIA firms likely won’t have a need for Deliverables because they have much smaller staffs and, in many cases, the person charging the fee at such firms is the same person who writes the financial plan and reviews it, he explained.
Deliverables was tested by Cetera Financial Group and several other mid- to large-size broker-dealer firms during a private beta for about two months and then went live in early April, Kitces told ThinkAdvisor. Cetera is expected to be the first firm to go live with Deliverables.
“We’re building for some very internal processes,” Kitces said. “Every firm does it a little bit differently and so we had to kind of set the roadmap of what will the standardized process look like.”
There are “a lot of firms actively in the pipeline now that are working on both rolling out the mobile check deposit [feature] to get rid of all the paper checks and the overnighting of checks, which we launched last month, and now getting ramped up on Deliverables as well,” he said. He didn’t identify any of those other firms.
Other than Cetera, AdvicePay clients include LPL Financial and the Advisor Group divisions that were acquired from Ladenburg Thalmann last year, Kitces told ThinkAdvisor.