LAKE SUCCESS, N.Y.,
Nov. 3, 2016 /PRNewswire/
-- Broadridge Financial Solutions, Inc. (NYSE:BR) today
announced a new suite of technology driven solutions to help the
investment community solve several of the most pressing challenges
associated with the upcoming U.S. Department of Labor (DOL)
Conflict of Interest Rule. The new offerings – DOL Fiduciary
Solutions, DOL Customer Communications, and DOL Compliance
Reporting – can help firms validate, communicate and comply with
the new rules, which take effect April 10,
2017.
The new DOL rule is one of the biggest regulatory events facing
the financial industry. It will expand the definition of ERISA
fiduciary investment advice and apply a "best interests" standard
to a broader range of investment services, including retirement
investment advice and certain IRA rollover recommendations.
"The financial industry needs to evolve their businesses and
strategies to meet the higher standards, and turn compliance into a
competitive advantage. Forward thinking firms are using the new
rule as an opportunity to further engage customers and deepen
relationships through new technologies," said Andrew Besheer, Product Lead for Broadridge's
DOL Fiduciary Standard solutions. "Helping fiduciaries meet
disclosure obligations can provide an additional communications
touchpoint to add transparency and clarity to point-of-sale
transactions, and strengthen customer relationships, while
improving firm-wide operations."
According to a Broadridge poll of nearly 500 financial
professionals, sixty percent of asset managers, broker-dealers,
insurance providers and record-keepers say that the new DOL
Conflict of Interest rule will have a significant impact on their
business models. In over 150 Broadridge dialogues with financial
institutions, the need for automated, repeatable, and thoroughly
documented practices governed by each firms' specific business
rules is a consistent theme.
Solving for Suitability
Under the new regulations, advisors will need to standardize and
simplify the process for capturing recommendations for funds and
annuities and investor signature. Broadridge's DOL Fiduciary
Solutions, built on Broadridge's industry leading FundPOINT
data, can help financial advisors and firms make investment
recommendations that meet fiduciary standards. Using the tool to
evaluate and validate their mutual fund sell list, advisors can see
that the funds and share classes on broker-dealer and other
distributor platforms are suitable for specific clients. Firms can
equip advisors with self-service tools to distribute contract,
notification and disclosure documents, while aggregating required
data and incorporating point-of-sale suitability analysis, fee data
and performance information with transparency and clarity to end
customers.
Compliance with Customer Communications
The new DOL rule will require firms to produce, distribute and
archive all disclosures, transaction documents, regulatory
documents, and advisor recommendations. This will include the Best
Interest Contract (BIC), Fiduciary Acknowledgement Letter,
pre-transaction disclosures, and numerous other disclosures.
Regardless of delivery method –electronic, print, mobile– all
communications must have updated data sourced from multiple
databases and quality checked for accuracy. Broadridge's DOL
Customer Communications solution leverages Broadridge's
existing communications connectivity across the breadth of the
financial services industry to easily allow for composition,
multi-channel print or digital delivery, as well as tracking and
archival capabilities for compliance. A replay of
Broadridge's recent webinar focused on DOL customer communications
is available here.
Compensation and Conflicts of Interest
To comply, organizations need to identify and address conflicts
of interest with third-party compensation both at the firm and
advisor level by eliminating, restructuring, or "levelizing"
compensation / fees. It's going to be critical to continuously
monitor client accounts and advisor activity for compliance
purposes. By creating, communicating and enforcing procedures that
minimize conflicts of interest, firms can proactively manage risk.
Broadridge's DOL Compliance Reporting solution, built on
Broadridge's scalable RevPort revenue management engine, can help
firms maintain compliance and manage risk by minimizing conflicts
of interest with third-party compensation/payments; and aggregating
account level data for monitoring and reporting.
The time remaining to comply with the DOL Fiduciary Rule is
running short. For additional details and resources on Broadridge
and the DOL Fiduciary Standard, please visit
www.Broadridge.com/DOLFiduciaryRule.
About Broadridge
Broadridge Financial Solutions, Inc.
(NYSE:BR) is a leading provider of investor communications and
technology-driven solutions for broker-dealers, banks, mutual funds
and corporate issuers globally. Broadridge's investor
communications, securities processing and managed services
solutions help clients reduce their capital investments in
operations infrastructure, allowing them to increase their focus on
core business activities. With over 50 years of experience,
Broadridge's infrastructure underpins proxy voting services for
over 90% of public companies and mutual funds in North America, and processes more than
$5 trillion in fixed income and
equity trades per day. Broadridge employs approximately
10,000 full-time associates in 16 countries. For more information
about Broadridge, please visit www.broadridge.com.
Media
Contacts:
|
|
|
|
Linda
Namias
|
Joe
LoBello
|
Broadridge Financial
Solutions
|
Brainerd
Communicators, Inc.
|
+1
631-254-7711
|
+1
212-986-6667
|
linda.namias@broadridge.com
|
lobello@braincomm.com
|
Logo -
http://photos.prnewswire.com/prnh/20110920/MM71626LOGO
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/broadridge-launches-suite-of-solutions-for-dol-conflict-of-interest-regulations-300356671.html
SOURCE Broadridge Financial Solutions, Inc.