What You Need to Know
- UBS launches its fourth Future of Finance Challenge for fintech startups and tech entrepreneurs.
- J.P. Morgan is acquiring OpenInvest.
- Riskalyze adds a Best Interest Proposal Assessment feature.
LPL Financial on Thursday announced a new feature in its centrally managed advisory Model Wealth Portfolio platform that it said provides advisors with more flexibility to combine models within a client’s portfolio.
Advisors can bring together models of varying risk scores and investment objectives to create unique and diversified portfolios designed to address each client’s goals and risk tolerance, according to LPL. Advisors can combine models of different investment objectives, as long as the account’s total risk score aligns with the client’s overall account investment objective.
The risk score is determined using AdvisoryWorld’s risk scoring methodology, which LPL has built directly into MWP and is available to any advisor who uses the platform, it said.
Now, instead of using one strategist to manage the portfolio, advisors can simply diversify across multiple strategists, as well as their own Advisor Sleeve models, to create a unique portfolio aligned with their client’s objectives, according to LPL.
UBS Launches 4th Future of Finance Challenge
UBS kicked off its fourth Future of Finance Challenge, an open competition for fintech startups and tech entrepreneurs around the globe. It has been held every other year since 2015.
UBS is searching for innovative and potentially disruptive technology products and solutions that it said Thursday “address these specific challenges to support the transformation” of the banking industry: sustainable banking, reimagining investing, app stores and platforms, and tech and cybersecurity.
The competition allows participants to present their products and solutions in a global competition with cash prizes and benefits with a total value of more than $400,000. The prize money for each challenge winner is $10,000. Noncash benefits include more than 120 hours of dedicated coaching by UBS experts and mentors, along with unique access to UBS experts and decision-makers, it said.
This year, UBS is also launching a Female Founder Award that it said was designed to encourage female entrepreneurs to participate in the challenge. Every entrant with a female executive board member or founder is eligible to win this additional prize, also worth $10,000.
Competition winners will get a chance to receive UBS’ support in “further commercializing and scaling their products and technologies by using the bank’s global presence, deep expertise in banking and its ecosystem of innovation partners,” it said. Since 2015, about 50% of finalists have received additional funding after the competition, some with significant funding rounds.
The competition is delivered in collaboration with Anthemis, Deloitte and Microsoft for Startups. The deadline for submissions is Aug. 6.
J.P. Morgan to Buy OpenInvest
J.P. Morgan entered into an agreement to acquire OpenInvest, a fintech firm that helps financial professionals customize and report on values-based investments.
OpenInvest will retain its own brand and be integrated into the J.P. Morgan Private Bank and Wealth Management client offerings. The purchase price and other terms of the deal, expected to close in the third quarter, were not disclosed.
Backed by capital from Andreessen Horowitz, Y Combinator, QED and others, OpenInvest was founded in 2015 with a main focus on helping advisors unlock the true impact of their clients’ investments.
“OpenInvest will be a powerful resource for our advisors to use in helping clients personalize their investments,” according to Michael Camacho, CEO of J.P. Morgan Wealth Management Solutions.
The news follows J.P. Morgan Asset Management’s announcement late last year that it entered into a definitive agreement to acquire fintech 55ip, which makes tools that let financial advisors deliver tax-smart investment strategies to clients. That news came less than two months after the companies said they had teamed up to give advisors the ability to easily and efficiently transition clients into JPMorgan model portfolios using 55ip’s automated tax technology.
“Over time, J.P. Morgan will leverage OpenInvest’s ESG capabilities with 55ip’s tax-smart investment strategies to deliver customized solutions to Private Bank and Wealth Management clients that are values-aligned and tax-efficient,” J.P. Morgan said.
Riskalyze Adds Best Interest Proposal Assessment
Riskalyze announced the addition of the Best Interest Proposal Assessment feature that it said Wednesday will “equip compliance teams and advisors with the documentation needed to prove best interest for client rollovers as financial advisors prepare for upcoming regulations.”