The new Department of Labor fiduciary ruling is one of the most transformative pieces of legislation to affect financial advisors in recent memory. And while the exact nature of the consequences are yet to be determined, that doesn\u2019t mean you can\u2019t be proactive and prepare your business for the new challenges ahead.<\/p>\n
Take a look at our checklist of important tasks made even more important by the DOL ruling. How well does your technology offering support and streamline each?<\/p>\n
The new DOL rule may or may not reduce fees, but it\u2019s definitely going to increase paperwork. Online document management tools provide a secure, easy-to-access place to store all that necessary documentation. Plus, some tools even allow you to send important files such as account statements and annual reviews directly to your clients, making the tracking of important documentation that much easier. It\u2019s like a compliance officer\u2019s dream.<\/p>\n
Some clients can be notoriously tight-lipped. But working without all the facts is no longer an option. Software that \u201cgamifies\u201d the data gathering process online is a great way to engage clients and elicit the important financial information you need to provide advice in their best interests. Plus, by engaging your clients to add data themselves, you save that now even more precious resource \u2013 time.<\/p>\n
Ideally you should integrate the data gathering and risk assessment process into one to give you a complete picture of your clients\u2019 current situation and risk tolerance. And if you you\u2019re able to gather this data quickly and easily, your process becomes scalable and repeatable.<\/p>\n
It\u2019s now more important than ever to have a deep understanding of your clients\u2019 financial goals. And while the relationships you have with clients are still the center of this conversation, financial planning software can help document, illustrate, and compare a client\u2019s various goals as well as the potential strategies they can use to meet them.<\/p>\n
Perhaps even more important than you understanding your client\u2019s goals, is the client understanding your advice. Which is why engaging clients to become an active participant in the financial planning process is key to your technology workflow. Collaborative planning software makes starting the conversation easy and keeps your clients invested in the plans they help build.<\/p>\n
Your fiduciary duties don\u2019t end after you\u2019ve put clients in a proper portfolio. The DOL rule requires frequent updates and reevaluations to properly act in your clients\u2019 best interests. Account aggregation helps to automatically update account information, financial planning tools create new reports, and personal financial management websites for clients facilitate communications about goals.<\/p>\n
The DOL has made servicing small accounts a whole new problem. Technology however, is able to help when segmenting your book by providing the tools to automate key tasks and monitor clients more easily, while still providing clients with the service they need.<\/p>\n
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