Advisor Group deploys electronic tools ahead of Reg BI

Technology providers have been ramping up tool enhancements as the Securities and Exchange Commission’s Regulation Best Interest compliance deadline quickly approaches, and Advisor Group is joining the list of firms deploying tech to help advisers brace for new regulatory requirements. 

Advisor Group announced Thursday the roll out of its new technology tools, under the firm’s eQuipt Dashboard, designed for advisers to comply with Reg BI as well as Form CRS. 

Instead of developing disparate tech products that the firm’s network of independent wealth management firms would have to be trained to use, Advisor Group has integrated the technology enhancements to the already existing eQuipt digital client onboarding and account management platform, requiring minimal effort from advisers to adopt, Advisor Group President of Products and Platforms Matt Schlueter said in an interview.

The first product is the eConsent tool, which basically allows advisers to see which clients and prospects are not enrolled in Advisor Group’s new electronic delivery product, eDelivery, and sends them an invitation to enroll by clicking a “consent button,” Schlueter said.

The tool then captures each client’s consent, logs it for record-keeping, and enrolls the client in eDelivery. The eQuipt Dashboard also features one-click eDelivery enrollment that advisors can utilize during account setup or in other direct interactions with clients.

 “Typically an adviser would print off documents or email it to a client,” Schlueter said. “Instead, the client gets one email with one link in there that they click for authorization, and then we send the disclosures to the client.” Those disclosures also allow clients to read about the set of services that Advisor Group offers that are covered by the Form CRS regulation of the SEC.

With a large network of advisers, Advisor Group turned to a multi-pronged approach to ensure its advisers are ready for Reg BI. Prior to social distancing as a result of the coronavirus pandemic, Advisor Group started with“roadshows in multiple cities to start the education of Reg BI for advisers, Schlueter said.

“Parallel to that, we’ve had a large project group over the last year working behind the scenes to take the friction out of the regulation,” Schlueter said. “The regulation doesn’t have to be burdensome and we believe strongly that good and thoughtful regulation, in turn, helps the consumer make good choices.” 

While deploying a technology-driven tool for advisers to quickly adopt and keep up with the new regulatory standard, designing the eQuipt dashboard is also Advisor Group’s way of pushing its network of advisers and their clientele toward an entirely paperless transaction processes, Schlueter said. 

“We want to have technology solutions that allow the elimination of paperwork that, frankly, puts the client at risk,” he said. “It’s better for the industry to adopt solutions that eliminate the trading of physical documents back and forth for disclosure as well as the onboarding and ongoing.”

Related Topics: Advisor Group, Securities and Exchange Commission