New Reg BI Functionality Built Into Riskalyze Select and Elite Will Assist Wealth Management Enterprises in Addressing All Four Components of the Rule
Riskalyze announced brand new functionality and workflows as upgrades to its Riskalyze Select and Elite products to help financial advisors and wealth management enterprises address all four components of the new Regulation Best Interest (Reg BI) rule that is expected to take effect later this year. Riskalyze gives advisors the ability to assess client risk tolerance, build a proposal through a proprietary Reg BI-compliant workflow, attach and document the delivery for Form CRS with those proposals, implement them via Trading Automation, and give home offices visibility into the process with a configurable enterprise dashboard.
This solution helps wealth management enterprises comply with all four components of the new regulation, including:
- Documentation – The solution documents that advisors have approached risk and portfolio recommendations in a non-biased, quantitative, and scientific manner. With the built-in ability to integrate Form CRS into proposals, wealth management enterprises can easily document advisor delivery and compliance.
- Care – At its core, 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 management enterprises can establish white/blacklists into 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 easy-to-read report.
- Compliance and Monitoring – Wealth management enterprises can easily 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 REITs, non-traded REITs, bonds, structured notes, BDCs, fixed annuities and variable annuities, and all US stocks, ETFs, and mutual funds.
“The vast majority of advisors and enterprises that we serve are already compliant with most of Reg BI, and 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,” said Aaron Klein, CEO at Riskalyze. “We’re thrilled that several major wealth management enterprises have chosen Riskalyze to solve their Reg BI challenges, and we look forward to implementing this on time for our enterprise partners.”
These expanded compliance solutions are timely given the SEC’s June 30 deadline, after which it will start enforcing the Reg BI compliance with no grace period. However, even without the regulation in effect, these new workflows will allow every advisor to achieve what is a best practice anyway — demonstrating care for clients while educating and informing them about their decisions.
“We’re thrilled to partner with wealth management enterprises who believe in our mission to empower the world to invest fearlessly,” said Drew DiMarino, Chief Growth Officer at Riskalyze. “With Riskalyze, these organizations can better empower advisors to know the client, know the recommendations being made, and holistically align them both.”