Cetera Financial Group, the large independent broker-dealer network, is revamping its technology platform in partnership with PIEtech Inc. in anticipation of the Department of Labor fiduciary rule for retirement plans that goes into effect in April, Cetera announced Wednesday.
However, the upgrade will go beyond any DOL requirements, according to Robert Moore, CEO of Cetera Fianncial Group. The revampng is designed to take the entire investor-advisor experience into the future era of technology, as well as incorporate any needed changes to comply with the DOL fiduciary rule for retirement plans that goes into effect in April
"Thiis is just the beginnng," adds David Ballard, chief operating officer for Cetera Financial Group. "This gave us the opportunity to rethink our whole experience for the investor and advisors and transform it with new technology."
For this first step, Cetera is partnering with PIEtech to provide its MoneyGuidePro, myMoneyGuide and Best Interest Scout to the company's financial advisors and financial institutions. These tools work together to gather client data on a scalable basis, evaluate each client’s financial situation to better understand the client’s goals and overall financial wellbeing, and align advice recommendations in a manner that complies with the new DOL regulations, Cetera says.
MoneyGuidePro financial planning software gathers client information directly into a financial plan and enables professional advisors to engage with their clients to explore their expectations so advisors can formulate advice and document the process that leads to each account recommendation.
myMoneyGuide is an online planning tool that enables clients to build their own personalized plan for retirement.
Best Interest Scout is a stand-alone tool that gathers client data to help advisors evaluate their clients’ financial circumstances and determine whether they are invested in accordance with their best interests.
The new tools will enable Cetera advisors to meet the fiduciary standard required by the new DOL regulations, Cetera says.
“This alliance is the first in a series that will come together to form a technology ecosystem capable of placing Cetera, its advisors and its institutions on the winning side of the demographic, technological and regulatory changes that are transforming our industry," says Moore. “This new ecosystem is a key ingredient on the road to positioning Cetera to be the industry leader that is fully prepared to answer the most important question in our space today: What does it truly mean to deliver financial advice – beyond just DOL preparedness – for the future?"
The partnership with PIEtech is the first of a series of technology improvements that Cetera plans to make. The new PIEtech tools, together with other technology solutions and services, will be rolled out starting in early 2017, and throughout the first half of next year.
“The unprecedented investment that we have seen in financial technology over the last few years, we believe, provides a unique opportunity for Cetera to rework the entire technology platform so we can provide solutions to a full spectrum of the challenges our industry is currently facing and capture significant growth potential, as well,” Moore adds.
“The key to success in the new regulatory environment will be the ability to obtain more and better client data on a scalable basis, and to deeply evaluate it to provide a higher quality of advice that also conforms to a more rigorous standard of client engagement,” says Kevin Knull, president of PIEtech.