We’ve been reading the online Department of Labor (DOL) chatter about increased fiduciary responsibility, and as advisors, we’re heightening countermeasures before the dust settles.
As you are aware, the DOL has recently proposed changes that could drastically alter our industry. These proposed fiduciary changes would hold insurance and financial professionals to a higher legal standard to act in the best interest of their clients.
The question for many firms is how much effort do I put forth standardizing processes to live up to what might happen?
According to CNBC, many more firms are turning to turnkey asset management platforms (TAMPs). However, many TAMPs still leave huge voids when it comes to integrating fixed income with individual plans. For some advisors, it’s an arbitrary number or the equivalent of an account that needs to be rolled over. Others have analytical teams in place to create allocations on their proprietary models. Either way, this opens the door for human error, and more importantly, leaves your firm exposed to potential threats and litigation.
As a J.D., former advisor and RIA agency founder, I understand this more than most. Although most may never go through the judicial process, they can still ding your FINRA records. There’s also the potential harm to your reputation. This can do far more damage to a thriving business than our judicial system. And, how about the time invested in navigating these situations? And the additional time to be invested once potential DOL rulings go into effect?
I’d like you to take a look at ChangePath built by myself and a team of advisors, RIA principals, fund managers, programmers, actuaries and visionaries. This TAMP was built by RIAs, for RIAs, and offers the first automated integration of annuities into client portfolios. We have hundreds of client portfolio allocations we tie to a client’s risk tolerances and demographics.
I started using this TAMP at my own boutique financial firm in Kansas City, but now my team is offering it to IARs and RIAs.
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