InvestorCOM Introduces Account Recommendation Application to Wealth Compliance Platform
AccountCompare ensures the rationale for account recommendations are in the investor’s best interest, digitally documented and aligned with the firm’s policies.
Toronto, ON, January 30, 2024 – InvestorCOM, a leading wealth compliance software provider, today announced that its powerful compliance platform now features an account analysis application to help financial professionals ensure the account type is best suited for the client and meets Regulation Best Interest’s (Reg BI) Care Obligation requirements.
InvestorCOM AccountCompare features an intuitive process for financial professionals to assess and compare account type recommendations, and natively document the rationale for their recommendations based on:
- the amount of assets;
- the client’s service needs, such as their preferred reliance on their financial professional; and
- key transactional factors, such as early withdrawal penalties, fees, and tax implications.
By assessing these factors, financial professionals can improve the quality of their recommendations.
The Securities Exchange Commission (SEC) has been clear about its expectations surrounding account recommendations. Reg BI’s adopting release first highlighted the ‘Application of the Care Obligation to Account Type Recommendations.’ Later, the SEC’s staff bulletin outlined that “Both Reg BI and the IA fiduciary standard require account recommendations to be in the retail investor’s best interest.”
“Regulators are increasingly focused on the importance of best interest recommendations, specifically requiring financial professionals to illustrate why a brokerage or advisory account was recommended, how it meets the investor’s needs, and if costs were considered,” said Randy Barnes, Director of Product and Sales Engineering at InvestorCOM. “Our technology is designed to do just that, supported with digital documentation and delivery.”
AccountCompare’s robust feature set was intentionally designed to be intuitive for financial professionals to use and provide value across the entire firm. For example, AccountCompare:
- streamlines oversight of account recommendations across all the firm’s respective financial professionals
- incorporates rationale behind the financial professional’s decision, and can be standardized across the firm using firm-configured and CCO-approved reason text
- automatically generates plain language digital documentation with the recommendation information stored in a 17a-4 compliant manner for recordkeeping purposes
- is simple to understand and easy to use; users can get started in minutes with no training required
In addition, AccountCompare recommendation data flows into InvestorCOM’s enterprise compliance warehouse allowing compliance to easily review and identify outliers.
AccountCompare is the latest in a series of new applications available on InvestorCOM’s compliance platform that are helping firms and financial professionals meet their regulatory requirements. Other applications include:
- PeerCompare for assessing reasonably available alternatives and documenting best interest recommendations
- RolloverAnalyzer for comparing and analyzing rollover options, looking up costs, and making best interest recommendations for recordkeeping and disclosure
- ComplianceExpress, a powerful document disclosure and delivery engine
To learn more about AccountCompare and InvestorCOM’s compliance platform, firms can sign up for a demo.
About InvestorCOM Inc.
Since 1992, InvestorCOM has been providing regulatory compliance software and communications solutions to wealth managers, asset managers, and insurers. Our high value, intuitive solutions eliminate compliance risk for our clients. For more information, visit www.InvestorCOM.com, email firstname.lastname@example.org or call 1-800-361-9494.
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