Wealth management firm using InvestorCOM to digitize the assessment of reasonably available alternative product recommendations and best interest rollover recommendations
InvestorCOM, a leading regulatory software provider to the wealth management industry, announced that Davenport & Company LLC, a leading wealth management and financial advisory firm, is using InvestorCOM’s compliance technology to meet the Department of Labor’s (DOL) PTE 2020-02.
“Using purpose-built compliance technology to meet the PTE 2020-02 requirements makes business sense,” Risa Gomez, First Vice President of Retirement Plan Services at Davenport & Company
Making Best Interest Product and Rollover Recommendations
Reg BI came into effect on June 30, 2020, requiring broker-dealers and financial professionals to ensure their recommendations are in a client’s best interest. FINRA’s recently published 2022 Exam Report indicated that more can be done on various aspects of the Care Obligation: evaluating recommendations based on cost, risk and return factors; considering reasonably available alternatives (RAA); disclosing conflicts of interest and maintaining a record of the best-interest analysis and disclosure.
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“InvestorCOM PeerCompare takes the guesswork out of making compliant product recommendations,” said Risa Gomez, First Vice President of Retirement Plan Services at Davenport & Company. “The built-in disclosure and recordkeeping capabilities makes it easy for our supervision team to track advisor activity in a consistent way across the entire firm.”
“The good news for firms is that many of FINRA’s findings related to making best interest product recommendations, documentation and disclosures can be resolved efficiently and cost-effectively using technology,” said Parham Nasseri, InvestorCOM’s VP of Regulatory Strategy.
Assess, Document and Disclose Rollover Recommendations
Reg BI’s Care Obligation and the DOL’s PTE 2020-02 require that firms meet specific requirements when making rollover recommendations.
When InvestorCOM polled 100 dealers in January, 37 percent stated their biggest challenge in meeting the PTE 2020-02 requirements was the disclosure, documentation and retrospective review process.
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“Using purpose-built compliance technology to meet the PTE 2020-02 requirements makes business sense,” continued Ms. Gomez. “An advisor could spend several hours aggregating cost data and assessing, documenting, and disclosing a single rollover recommendation. With access to a comprehensive rollover analysis tool, our Financial Advisors can easily document their comprehensive discussions with clients about moving their retirement dollars.”
“InvestorCOM’s RolloverAnalyzer is designed to help financial professionals save time and make compliant recommendations,” added Mr. Nasseri. “Making balanced recommendations that are in the client’s best interest is not only about regulatory requirements; it’s about guiding clients through one of the most important financial decisions they will face. RolloverAnalyzer provides a unique investor-centric workflow to assess, document and disclose rollover recommendations. We are thrilled to partner with Davenport, an independent financial services firm with a reputation of building long-term relationships with its clients.”
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