InvestorCom soups up investment comparison application for advisors

Algorithm-based peer ratings capability promises to take the guesswork out of KYP-compliant investment recommendations

InvestorCom soups up investment comparison application for advisors

Continuing its mission to help wealth firms fulfill their regulatory obligations, particularly in the face of the client-focused reforms (CFRs), regtech provider InvestorCOM has announced an enhancement to its cloud-based compliance app, PeerCompare.

Designed to help advisors evaluate reasonably available investment product alternatives, PeerCompare is powered by a proprietary algorithm-based process. With its new Peer Ratings capability, it identifies peer groups for all security types and assigns a rating for each security relative to its peers based on the security’s cost, risk, and return characteristics.

“InvestorCOM’s product philosophy is to provide simple, intuitive solutions that support the advisor’s expertise in making securities recommendations,” said InvestorCOM VP of Product and Marketing Dave Carr-Pries. “Peer Ratings eliminate any guesswork and help advisors to efficiently identify which investments may be worth considering when making a best interest recommendation.”

The Peer Ratings capability also promises to put unprecedented oversight capabilities within the reach of compliance supervision teams. With the ability to view products along a spectrum, compliance professionals will be able to better define, monitor, and enforce best-interest guardrails. Patterns in advisor recommendations can also potentially be revealed with trend analyses.

InvestorCOM initially made Peer Ratings available for its ShelfAnalyzer product, which enables firms to assess the competitiveness of their shelf. Products offered by a firm are evaluated against their peers based on cost, risk, and return, allowing for the creation of a best-interest product shelf as the firm decides which offerings to keep and which ones to remove.


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