The robo-advisor Betterment, which also offers access to licensed advisors, has established a referral service for retail clients and financial professionals, initially available on a pilot basis.
The program is separate from the premium access already available for clients.
"Betterment recently launched Betterment Advisor Network (BAN), a referral program designed to connect select Betterment retail clients with independent RIAs on our platform for ongoing, personalized advice," a Betterment spokesperson told ThinkAdvisor by email Friday. "We're beginning with a limited pilot program for a small group of advisors and plan to expand over time as we learn more about client demand and advisor needs."
In a Securities and Exchange Commission filing last week, Betterment says it refers qualifying retail clients to certain advisors participating in BAN for investment advisory services. Clients who participate will receive contact information for one or more network advisors, and after an initial phone call, may enter into a separate agreement with the advisor that would include fees and other terms.
The client would continue to be serviced by Betterment, which continues to charge a 0.25% annual advisory fee on the clients' assets, the filing says.
"Betterment does not not receive additional compensation from BAN Advised Clients for providing the BAN referral services," the filing says. "Betterment conducts due diligence of firms participating as third-party advisors in the Betterment Advisor Network."
Clients who enroll in the program may be referred based on their financial situation and investment preferences, according to the company.
Wealth Management reported on the program last week.
Image: Adobe Stock
© Touchpoint Markets, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.