Riskalyze, the company that offers risk assessment and alignment with client portfolios, has created a wealth management dashboard that links the company's three services: risk, a robo-adviser and compliance.
The Real-Time Wealth Management Enterprise is designed to solve four problems that Aaron Klein, chief executive of Riskalyze, said he hears from advisers. They include how to manage fiduciary reviews of client portfolios once the Labor Department's fiduciary rule passes, how to propose portfolio changes in response to those reviews, drive scalability by working on smaller accounts and have the process happen immediately. There are no additional costs for the adviser to use the system and implementation will take about 75 days for most customers, Mr. Klein said.
It is particularly helpful for smaller accounts, which can be found on Autopilot, the company's robo-adviser, Mr. Klein said.
“What is beginning to emerge is a way to use technology to provide a good level of service to those smaller accounts,” he said.
Advisers logging onto the platform will already see the Riskalyze number, the score summing up a client's risk tolerance threshold with his or her portfolio. Upon fiduciary reviews on client accounts, advisers can see if a portfolio must be changed, immediately make those changes and then send it off to compliance in a few clicks for approval.
It all comes down to the potential DOL effort to require advisers to act in their
clients' best interest when it comes to their retirement accounts.
“We have sort of pioneered the risk-first investing approach,” Mr. Klein said. “We are uniquely capable of helping advisers document that they are exercising fiduciary duty under DOL rules.”
