Moving forward, Morningstar will also launch a suite of wealth management tools, Kapoor said. The tools will help advisors aggregate client and household accounts, rebalance across those accounts and engage more clients.
Morningstar’s Data Catalyst tool will help advisors create data-driven conversations about client portfolios, using the company’s global risk framework to analyze portfolios for overexposures. The tool will also help advisors build suitable portfolios based on client goals, and may also assist advisors with best interest requirements.
As advisors try to get more information about their clients for holistic planning, that’s increasingly putting them at odds with large financial institutions, which act as gatekeepers of their clients’ consumer information. Kapoor warned of a growing conflict between the advisors and those institutions.
“It is our feeling that it’s going to be harder and harder to get access to information in the way it’s available today,” said Kapoor. “Large institutions as well as record keepers will not want to give up that info to you, the advisor.”
And that conflict will threaten advisors’ ability to give holistic financial advice, said Kapoor.