When it comes to bugbears in the advisory world, the rigorous demands of compliance departments usually feature pretty prominently in most discussions. That said, there are well-founded reasons for these rules, so if anything, the compliance requirements are only likely to increase in the years to come. Better to not be caught flat-footed then, but luckily advancements in technology have enabled advisors to minimize time spent ensuring they are working to code.
One such product is EquiSoft’s WealthElements, which allows advisors to lessen the time spent on compliance, thus freeing themselves up to prioritize serving clients.
EquiSoft Vice-President, Wealth Management Solutions, Jonathan Georges outlines the advantages of using specially designed software for investment portfolio design.
“On the investment side, we have built in a workflow within the application to help guide the advisor to select or design a portfolio that is consistent with the risk tolerance of the client,” he says. “The workflow within that module will involve the advisor looking at the client’s current situation, answering an investor profiling questionnaire, and from there, design a portfolio that is consistent with the client’s objectives and constraints.”
After that comes the most important step – presenting your portfolio to the investor, which again is made that more efficient through modern technology.
“The next step is to help an advisor build a compelling story and give them the ammunition they need to support their recommendations,” says Georges. “The advisor can use our software with the client (on an iPad for example) for an interactive experience or the recommendation can be generated in a PDF document that can be presented to their client.”
Of course, going through all those steps and creating an investment strategy the client is pleased with will all be for nothing if that process doesn’t fit within the parameters of the firm’s compliance department. This is where WealthElements comes in.
“Compliance departments love our application,” says Georges. “We specially configure different versions of WealthElements to reflect each firm’s existing investor profiling questionnaire, investor profiles and even model investment portfolios.”
If the advisor follows the application’s workflow, they can be confident that they are recommending an appropriate investment portfolio that will always be on-side from a suitability and compliance perspective.
“The end result of this process is a comprehensive document that outlines how the client’s wealth will be managed which really helps to set appropriate client expectations,” added Georges. “Setting appropriate client expectations with a well-documented plan, helps reduce client complaints – a huge drag on the advisor’s and their dealer’s time and resources.”