The Newest In Monetary #AdvisorTech (Might 2023)

Welcome to the Might 2023 subject of the Newest Information in Monetary #AdvisorTech – the place we take a look at the massive information, bulletins, and underlying traits and developments which are rising on the planet of expertise options for monetary advisors!

This month’s version kicks off with the information that robo-advisor Betterment entered right into a $9M settlement with the SEC for misrepresenting its tax-loss harvesting practices in its shopper agreements and advertising and marketing supplies in contrast with its precise practices (e.g., ‘solely’ checking shopper portfolios for tax-loss harvesting each different day, after having marketed day by day checks) – a primary for the SEC in scrutinizing an RIA not for failing to execute its funding guarantees to shoppers, however for failing to execute tax-loss harvesting guarantees as a substitute. Which can increase questions for different RIAs (together with smaller companies) who promote their tax-loss harvesting practices as a part of a ‘tax-efficient’ investing technique about whether or not their very own practices (and the expertise they use to implement it) actually align with what they declare to supply.

From there, the newest highlights additionally characteristic a lot of different fascinating advisor expertise bulletins, together with:

  • Altruist has introduced a $112 million Collection D fundraising spherical to increase its capabilities to fulfill the wants of bigger advisory companies, the newest in a sequence of high-profile strikes (together with turning into a totally self-clearing broker-dealer and buying its rival custodian SSG) positioning Altruist to compete instantly with the likes of Schwab and Constancy for established RIAs.
  • GeoWealth has acquired its fellow TAMP First Ascent Asset Administration, marrying GeoWealth’s tech-forward, open-architecture funding administration platform with First Ascent’s ‘concierge’-style funding and service-oriented answer (and its flat-fee TAMP enterprise mannequin).
  • T. Rowe Worth has acquired Retiree Earnings, the father or mother firm of well-liked retirement earnings planning software program SSAnalyzer and Earnings Solver, to place its assets behind growing and distributing the corporate’s planning instruments (albeit maybe extra to its retail and worker retirement plan shoppers than to advisors?).

Learn the evaluation about these bulletins on this month’s column, and a dialogue of extra traits in advisor expertise, together with:

  • Enterprise assist software program supplier Benjamin shuts down its operations, which can say much less in regards to the demand for workflow assist instruments (which seems to stay robust) and extra about Benjamin’s positioning itself as an “AI-driven digital assistant” in an surroundings the place advisors could not belief AI expertise sufficient to pay for it as an answer.
  • A glance again on the evolution of advisor expertise as we come up on the 5-year anniversary of our Monetary AdvisorTech Options Map, which displays not solely the more and more crowded panorama with a proliferating variety of options in the marketplace, but in addition how shifting expertise wants of advisors themselves are eliminating entire classes of advisor expertise… and spawning new ones as nicely.

And make certain to learn to the top, the place we’ve offered an replace to our well-liked “Monetary AdvisorTech Options Map” (and in addition added the adjustments to our AdvisorTech Listing) as nicely!

*And for #AdvisorTech firms who wish to submit their tech bulletins for consideration in future points, please undergo [email protected]!

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