The Department of Labor (DOL) has set a new standard for advisors by redefining who qualifies as a fiduciary. New objectives aim to ensure that advisors are always putting the best interests of their clients first, and reduces conflicts of interest for advisors by increasing fee disclosures. Many believe that this fiduciary standard will increase the cost of business for advisors due to the cost to comply, and if some advisors want to continue to plan for a client’s retirement with investments, they will need to adjust their workflow.
It is clear that holistic financial planning will play a key role when creating compliance strategies for the impending DOL fiduciary rule for many financial services professionals. Advisors will need to deliver proof that they are providing credible advice that is in the best interest of their clients. Planning software and other FinTech tools will make this easier to accomplish and keep these records if they are needed in the future.
Advicent recently launched Narrator® Clients and Narrator® Advisor to arm advisors with tools that empower a collaborative and proactive client-advisor relationship. These tools provide advisors a way to remain compliant and offer advice with the client’s best interest in mind. Financial planning software was often regarded as “nice to have,” but the DOL is now driving it to be a “need to have.” If advisors want to remain relevant in the digital world and remain compliant to new legislation, they need to re-think the way they work.
Incorporating FinTech, such as the Narrator product line, into a firm’s workflow empowers an easier transition to the new DOL standards. The transparency offered with the online portal gives the client access to their financial plan 24/7, bolstering their confidence in the strategy and increasing their likelihood to stick to the plan presented. In addition, clients will feel more involved and connected to the planning process while the advisor will simultaneously meet the expectations of the new regulation. Advicent also understands that remaining compliant can be costly, which is why the tools offered easily scale to fit organizations of all sizes.
“Financial planning is becoming increasingly more important in the financial services industry in order to comply with the DOL fiduciary rule and keep the client’s best interest at the forefront of the client-advisor relationship,” said Phil Cunningham, CEO of Advicent. “Advicent tools provide firms and advisors the means to not only comply with the DOL fiduciary rule, but also empower their clients for financial success.”
The price of Advicent software will pay for itself when the advisor capitalizes on the cross-selling opportunities and the ability to uncover held away assets. By providing a comprehensive and in-depth financial plan, the client will feel more secure with their financial future. The advisor will also be able to present their options with confidence by utilizing our robust calculation engine that will provide accurate projections with retirement planning and asset management.