Future Advisor Review

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it’s been a crazy week, but i’m readyto get down to business. on today’s broadcast, personal capital raisesa new round of $75 million, sigfig raises its own round of $40 million, finra finesa rep for changing his crm notes, and more! so get ready, fppad bits and bytes beginsnow! hey everyone, i’m bill winterberg, thankyou for joining me for this week’s advisor technology news broadcast. today’s episode is brought to you by rightcapital;innovative financial planning software with unique tax planning capabilities. rightcapitalfeatures detailed tax projection and retirement distribution modules that allow advisors toillustrate tax-efficient drawdown strategies

and roth ira conversions. request your freetrial of rightcapital today by visiting fppad.com/rightcapital. this week’s top story comes from personalcapital, as the digital ria firm recently raised 75 million dollars in series e fundingfrom one investor, igm financial, a canadian-based financial services company. $50 million wasinvested immediately with the other $25 million to be invested next year, bringing personalcapital’s total amount of money raised to $175 million. what will the company do with the money? accordingto ceo bill harris, personal capital will double its advisor headcount from 100 to 200,and increase its development staff from 40 to 60. funds will also be used to double thecompany’s marketing budget, as chief marketing

officer mark goines was quoted as saying,“the sad truth is no one knows about personal capital,” what i find most interesting about this roundof fundraising is who made the investment. igm financial is an incumbent financial institution,not a venture capital firm, and i find it interesting that none of personal capital’sprior investors participated in this latest round. this begs the question: why not? because in another related story this week,sigfig, a san francisco-based online automated investment service, announced that the companyraised $40 million dollars, which includes $7 million of debt funding, bringing its totalraised just under $60 million.

once again, who led sigfig’s latest round? if you said an incumbent financial institution,give yourself a gold star, because eaton vance was the lead investor, and to the best ofmy knowledge, its participation marks the company’s first investment ever in a startupcompany! these incumbent players join a growing listof activity in this space, with blackrock acquiring futureadvisor, invesco acquiringjemstep, john hancock acquiring guide financial (remember them?). the list goes on! so what does this all mean?the throng of automated investment services who set out to change the way investors invest,make investing simple, et cetera, are now

cozying up with the incumbent financial institutionsmany of the startups set out to disrupt in the first place! and i didn’t even mentionthe sigfig partnership with ubs, did i? oh, and this week wells fargo said it toowill announce its own robo advisor partnership by the end of june! ok.while i calm down, you can read all about the latest activity over at fppad.com/189where i’ve linked to all of this week’s top stories. now on to news about the crm software youuse. this week, investmentnews reported about an ameriprise financial services representativewho was fined $50,000 and suspended for one

year by finra for backdating and editing clientnotes in his crm. the crm in this case was act!, and the repmade changes in his notes related to the sale of a variable annuities, which were discoveredonly after an arbitration panel mandated a forensic examination of the rep’s computer. so whether you use redtail, junxure, wealthboxcrm, salesforce, or any other solution, it’s critical that your firm be aware how the integrityof client notes, and all records for that matter, is preserved. if you don’t know,now might be a good time to conduct a quick audit. unfortunately i’m out of time to cover storieson earnwise from tradepmr, the password manager

from dashlane, maxmyinterest, and more, sohead over to fppad.com/189 to get all the details on this week’s top stories. remember, bits and bytes exists because ofthe support of our sponsors, so be sure to check out rightcapital, financial planningsoftware with built-in tax modules to illustrate tax-efficient drawdown strategies and rothira conversions for your clients. visit fppad.com/rightcapital today to request a free trial. summer has arrived in atlanta and school justlet out, so i’m taking next week off to disconnect, unplug, and recharge. thank you so much for watching, i’m bill winterberg,see you next time!

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