CapitalRock Expands Best Interest Rollover/Exchange Analysis


SALT LAKE CITY, Jan. 09, 2018 (GLOBE NEWSWIRE) -- After successfully deploying the RightBRIDGE Product Profiler solution to more than 35,000 licensed users across the financial services industry CapitalRock is expanding the analysis for the rollover/exchange module.  The Product Profiler currently analyzes whether a 401k rollover is appropriate for a client by asking both quantitative and qualitative questions regarding fees and preferences and using a scoring engine to determine whether a rollover is appropriate for a given client.  In Q4 of 2017 the solution was expanded to include multiple 401k rollovers in the analysis.  Using the size of a 401k and investment offerings in a plan to benchmark average fees for a plan was also added.  

CapitalRock is now expanding the rollover/exchange analysis to include the following retirement plans: 401k, 403(b), 457, IRA, IRA-Annuity, Non Qualified Annuity and Defined Benefit Plans.  “After completing the first phase of the Product Profiler development we recognized the need to expand the rollover/exchange analysis to include other qualified and retirement plans.  With the Impartial Conduct Standard in place it is necessary to analyze and document the rollover/exchange process.  Most firms are currently using a paper-based form to meet this requirement.  By expanding the Product Profiler analysis to include additional plan types we can assist and automate much of the current process,” according to John Hyde, President and CEO of CapitalRock.  “Now that we have implemented the Product Profiler at more than a dozen broker dealers we have received requests from our current clients to expand the functionality for additional plans,” Hyde added.

The additional analysis will take place in a two-step process.  The first step is to ask a short list of questions to determine if a more detailed analysis is warranted.  Based on how the questions are answered a set of rules are applied and the rollover/exchanged is scored with a green, yellow or red indicator.  If the indicator is red there’s no need to do additional analysis.  For example - if a client is still employed at the company providing the 401k and the company provides a 50% match and the client is satisfied with the investment options available through the plan, the scoring in the Product Profiler can be set to a red indicator.  By providing this first step triage analysis, an advisor can avoid collecting detailed fees and other suitability information on cases that don’t warrant further analysis.  For plans that score in the green or yellow a second more detailed analysis can be performed to compare features and fees.  

“We recognize that the most difficult part of a rollover or exchange is comparing features and fees.  Researching and finding current plan details is often difficult.  If a plan is determined to be a valid candidate for a rollover/exchange then we move on to the second step in the process and get more detailed information on both the current plan and the proposed plan/product,” stated Brian Hendricks Senior Vice President of Operations at CapitalRock.  

A smart questionnaire will determine what type of plan is currently in place and ask for details specifically related to the plan type.  Input will also be received regarding the proposed plan or product type for the rollover/exchange consideration.  Using the RightBRIDGE scoring engine, features and fees can be scored and weighted for each plan type and a green, yellow or red indicator can be provided.  In addition, ReasonText™ is provided to explain why a rollover/exchange should be considered or is not a valid option.  This more detailed analysis may require that a specific product be selected for fee comparison.  In this case the RightBRIDGE Annuity Wizard or Investment Wizard would be used for specific product selection. 

The Annuity Wizard has been in use since 2011 and is used by many of the largest distributors in the industry and was originally developed to assist advisors in sorting and filtering through a firm’s shelf of annuities based on the client’s objectives and preferences.  The functionality of the Annuity Wizard has been expanded with the Fiduciary Rule and Impartial Conduct standard to add compliance capability and document the process. 

The Annuity Wizard’s success facilitated the development of the Investment Wizard which provides a filtering and sorting process for mutual funds, ETFs and UITs.  The Investment Wizard was developed in response to firms using the Product Profiler and Annuity Wizard and wanting a similar tool for Investments.  

Using a combination of the analysis completed in the Product Profiler on the current retirement plan, and the product selection capacities of the Annuity and Investment Wizard systems, features and fees can be scored and compared. This data is then made available in a prefilled exchange form.

CapitalRock is currently working with several of its clients to determine what key data and analysis needs to be included in the exchange form.  The additional retirement plan analysis is slated to be complete in the RightBRIDGE solution by the end of Q1 2018.  By providing the additional functionality the RightBRIDGE solution can eliminate the manual re-entry of data and reduce the number of steps an advisor has to take to complete a rollover or exchange under the Impartial Conduct standard. 

CapitalRock

CapitalRock, LLC provides rule-based product selection tools and needs-based customer analytics to the financial services industry.  CapitalRock was founded in 2007 by a group of industry experts that have been building customer relationship and wealth management solutions for the financial services market for 30 years.  For more information, visit http://www.capitalrock.com.

RightBRIDGE, CapitalRock and Product Profiler are registered trademarks of CapitalRock, LLC. 

Media Contact:
Connor Thomas
cthomas@capitalrock.com
(804) 495-3644