Complying with New National & State “Fiduciary” and “Best Interest” Rules – A New Solution

The new regulatory initiatives by the SEC, DOL, and an increasing number of states, as well as recently filed lawsuits challenging them, are causing tremendous uncertainty. It’s clear that “something is coming” but, exactly what? Will compliance simply require increased disclosure, or will something more be required? Either way, there’s now a solution.

The apparent goal of these regulatory efforts is an attempt to ensure that what is recommended by RIAs and BDs is in their clients’ best interests. How better could this be achieved and demonstrated to regulators than by comparatively evaluating all available choices using blends of weighted performance factors which reflect the composite “investment effect” most desired by each client? This new RegTech solution could soon be available to help RIAs and BDs ensure that what is being offered to their clients is in their best interests – the motivating goal of virtually any version of these new rules and regulations.

With over a decade of testing and application in both retail and institutional investment advisory cases, Decision Technologies Corporation (“DTC”) is now planning to license its patented decision-assistance technology directly to RIAs and BDs to help them meet the compliance challenges posed by an increasing array of similar but non-identical rules.

DTC’s decision engine empowers investors and their advisors to select and weight multiple risk, return, and other performance factors, in a manner specifically tailored match each client’s needs, goals, and preferences. Using these hierarchically arranged and weighted blends of multiple performance parameters, RIA and BD representatives can score and rank thousands of investment choices. This enables them to easily and transparently identify which mutual funds and investment management teams have been the best over time at producing the composite investment results they and their clients are seeking.

Moreover, by filtering out all known and unknowable conflicts of interest and by individually optimizing investment selections, performance is often dramatically improved. This resulting “WealthTech” effect could provide RIAs and BDs with a significant competitive advantage by enabling them to meaningfully distinguish themselves in a marketplace where everyone appears to be doing the same things in largely the same ways.

RIA and BD clients can now objectively improve their investment selections and their chances of improved investment results, while the RIA or BD can exceed “Reg. BI” standards using DTC’s new RegTech solution.

Contact Decision Technologies Corporation to arrange a demonstration and to discuss how this newly available technology can be licensed and integrated into your investment advisory practice or securities brokerage business. Strategic alliance / investment / distribution opportunities are available.

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