HD Vest will switch clearing firms in September, transitioning to Fidelity Clearing & Custody Solutions from Wells Fargo’s First Clearing unit.
The move is part of a major overhaul of HD Vest’s platform, an effort led by chief executive Bob Oros, who took over a year ago from the retiring Roger Ochs.
HD Vest, which caters to accounting professionals who want to add investment advice to their tax-preparation services, has never been known for its cutting-edge technology.
But Oros hopes to change that with a wide-ranging upgrade.
Since its founding in 1983, HD Vest has largely built its own technology, Oros says. “But we’ve now pivoted to using the best commercial technology. … We now get to be the beneficiary … of all the technology investment [Fidelity makes].”
Oros, the former head of Fidelity’s RIA custody business, said the choice of Fidelity was made with an “arms-length review” of providers. “We ran good process,” he says.
Still, it’s nice to be connected to Fidelity again “mainly because I know who I can call,” Oros jokes.
Also in September, HD Vest will be rolling out upgraded advisory and trading capabilities through Envestnet, a process that was in the works with FolioDynamix before that TAMP was bought by Envestnet last year. And Oros says a new advisor portal with robo-style capabilities is in the works.
The firm will still develop tools internally where it has a unique advantage, as it does with its mainstay 1040 Analyst tool, Oros says. HD Vest advisors use 1040 Analyst to integrate with their tax software and identify financial needs a client might have. An updated version of the tool will be out late this year or next year.
HD Vest’s future is being shaped by its owner, Blucora Inc., which bought it in 2015.