The Newest In Monetary #AdvisorTech (Could 2023)

Welcome to the Could 2023 concern of the Newest Information in Monetary #AdvisorTech – the place we have a look at the large information, bulletins, and underlying developments and developments which are rising on the planet of know-how 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 purchasers, however for failing to execute tax-loss harvesting guarantees as a substitute. Which can elevate 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 know-how 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 know-how bulletins, together with:

  • Altruist has introduced a $112 million Sequence D fundraising spherical to develop its capabilities to satisfy the wants of bigger advisory companies, the newest in a sequence of high-profile strikes (together with changing into a totally self-clearing broker-dealer and buying its rival custodian SSG) positioning Altruist to compete straight 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 resolution (and its flat-fee TAMP enterprise mannequin).
  • T. Rowe Worth has acquired Retiree Earnings, the dad or mum firm of fashionable retirement earnings planning software program SSAnalyzer and Earnings Solver, to place its sources behind creating and distributing the corporate’s planning instruments (albeit maybe extra to its retail and worker retirement plan purchasers than to advisors?).

Learn the evaluation about these bulletins on this month’s column, and a dialogue of extra developments in advisor know-how, together with:

  • Enterprise help software program supplier Benjamin shuts down its operations, which can say much less concerning the demand for workflow help instruments (which seems to stay sturdy) and extra about Benjamin’s positioning itself as an “AI-driven digital assistant” in an atmosphere the place advisors might not belief AI know-how sufficient to pay for it as an answer.
  • A glance again on the evolution of advisor know-how 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 know-how wants of advisors themselves are eliminating complete classes of advisor know-how… and spawning new ones as effectively.

And make certain to learn to the tip, the place now we have supplied an replace to our fashionable “Monetary AdvisorTech Options Map” (and likewise added the modifications to our AdvisorTech Listing) as effectively!

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

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