Riskalyze Introduces A Complete Set of Compliance DOL Solutions for Advisors and Firms

By CIOReview | Friday, May 13, 2016
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FREMONT, CA: Riskalyze, a firm assisting investment advisors and firms launched a unified solution for compliance implications of the Department of Labor's (DOL) fiduciary rule. The company effectively enables advisors to combine each client's investments with their Risk Number product. Advisors and firms can now transform the industry challenges into enormous possibilities as Riskalyze incorporates updates to its product line.

"Perhaps the greatest opportunity for advisors lies with the small accounts that will slip through the cracks," says Aaron Klein, CEO, Riskalyze.

Advisors are already implementing the firm’s Risk Number for their client's benefit. Riskalyze  allows advisors to portray the alignment between investor risk tolerance and portfolio construction.

To deal with the complications involved in the implementation of Best Interest Contract Exemption (BICE), advisors will need the required tools to manage the procurement of BICE forms. Riskalyze will effectively automate the documentation of a point-of-contact audit trail at each stage of the client relationship, ranging from education to investment recommendations and client reviews.

Autopilot, a digital advice platform offered by Riskalyze pinpoints an industry challenge indicated by the DOL rule's disinclination to commission-based compensation. Many organizations will abandon the smaller, commission-based accounts as their identified compliance risks will be higher than the estimated revenue.

Firms are exposed to several legal issues from breach-of-contract lawsuits while working under one of the several exemptions in the final rule. The Compliance Cloud updates will help the supervisor teams in the new industry dynamics. Compliance Cloud will assist teams to reduce the mismatched risk objectives, missing BICE documentation, hyperactive accounts that may dampen the commission-based compensation or high-risk positions.

"It may seem easier to abandon these accounts than to adapt them to the new regulations, but firms who can transition these smaller accounts onto a next-generation, fee-based digital advice platform will be able to take advantage of a unique opportunity," adds Klein.