Displaying items by tag: ai

Wednesday, 13 March 2024 11:48

No More Changes to Reg BI: Gensler

Gary Gensler, the chairman of the Securities and Exchange Commission (SEC), spoke recently at the Investment Adviser Association Compliance Conference. In a Q&A session with reporters, he remarked that there were no current plans to modify or update Reg BI. Instead, the agency’s focus is on ‘examining for and enforcing against’ Reg BI.

 

In later remarks, he addressed its approach towards predictive data analytics. He believes this is a gray area, and the SEC wants to ensure that there are no conflicts of interest within newer technology that utilize behavioral prompts and nudges. Of course, this topic is even more germane given the increasing use of artificial intelligence (AI) powered applications. 

 

Gensler wants to ensure that there are no loopholes to bypass the fiduciary rule. Many in the industry contend that this rule is a backdoor expansion of Reg BI and that current regulations were sufficient. 

 

Previously, Gensler had spoken that the new technology enables practices to micro-target consumers with products and content. While this can help advisors grow their business, he believes this communications channel needs to be regulated as well to ensure that these business interests are not placed above the clients’. 


Finsum: At a recent conference, SEC Chair Gary Gensler pushed back that there was a backdoor expansion of Reg BI due to the predictive analytics rule. The rule mandates that predictive technology that communicates with clients must also follow the fiduciary rule.

 

Published in Wealth Management

Artificial Intelligence (AI) is disrupting how businesses operate in multiple ways. Advisors should embrace this technology, because it can help create more efficiency by handling routine tasks, freeing up more time and energy for high-value tasks. It can be particularly valuable in terms of managing the practice.

 

Some considerations include figuring out which parts of the business can be enhanced with AI and which should remain in the purview of an advisor. Another is that proper training in these tools is necessary in order to ensure that they are being properly used. 

 

An example of how the technology is already being leveraged to improve practice management is through the use of AI note-taking applications. Prior to this, advisors (or a staff member) would take notes during the meeting which can be distracting and detract from cultivating engagement. These apps can essentially transcribe and summarize the conversation which means advisors can stay in the moment and give full attention to the client.

 

Then, these summaries and notes from client interactions can be integrated into the customer relationship management (CRM) software. Thus, these notes can be used by the practice to provide a richer experience for clients by methodically following up on all relevant matters. AI can also help discover insights and identify action steps that need to be taken. 


Finsum: AI is the latest disruptive technology that will certainly impact multiple aspects of an advisors’ practice. Here is how it can be used to improve a practice’s operations. 

 

Published in Wealth Management

Investing in the right technology has the power to create a more efficient, scalable, and successful practice. The latest disruptive technology is artificial intelligence (AI) which will affect many different parts of a practice and is already impacting specific areas. 

 

Advisors who are able to effectively leverage AI will see a material and quantifiable impact in terms of generating leads, conversion rates, retention, and reducing time spent on operations and management. Client engagement is an area where advisors are already applying AI to generate positive outcomes and deliver more personalized outreach and services.

 

Ideally, an advisor would be able to spend hours learning and preparing for a client meeting. In reality, this is not possible given constraints and other responsibilities. However, with AI, an advisor can effectively organize and review all of a clients’ data, including notes from previous conversations, and find insights to deliver a more unique and valuable experience. 

 

AI can also help sort through all of the data generated by an advisor or practice and find hidden opportunities or potential risks. They can also provide guidance in terms of strategic decisions and long-term planning. It’s recommended to use a specialist AI model for these purposes given that it’s trained in relevant data and adheres to regulatory standards. 


Finsum: AI is the latest disruptive technology that will certainly impact multiple aspects of an advisors’ practice. Here is how it’s already affecting client engagement. 

 

Published in Wealth Management

[Webinar] Embrace the Role of Risk Manager with Hedged Equity Solutions

Wednesday, April 27, 2022 at 3 PM ET 

On the heels of the first Fed rate hike since 2018 and a slowing post-pandemic economic expansion, many clients are finding the mantra "keep calm" hard to follow. These times of uncertainty are a great opportunity for financial advisors to strengthen existing relationships and win new clients. But how do you get prospects off the sidelines, keep clients invested and manage risk without limiting upside potential?

Magnifi by TIFIN is excited to be joined by Swan Global Investments and Advisor Resource Council for a virtual panel presented by WealthManagement.com. Join our upcoming webinar for a discussion about:

  • Risk drivers and opportunities in the current market environment
  • Fed policy and the impact on balanced portfolios
  • Embracing the role of risk manager as a competitive advantage 
  • How AI-powered technology is transforming investing

 

Register at WealthManagement.com

Panelists:

Marc Odo

Marc Odo, CFA®, FRM®, CAIA®, CIPM®, FDP®, CFP® is responsible for helping clients and prospects gain a detailed understanding of Swan’s Defined Risk Strategy, including how it fits into an overall investment strategy. His responsibilities also include producing most of Swan’s thought leadership content.

Prior to joining Swan, Odo was Director of Research for 11 years at Zephyr Associates, a leading provider of investment analysis software. He was responsible for developing next generation risk analytics. Prior to that he was a portfolio manager with Accessor Capital Management, a mutual fund company; and part of the investment analytics team at Pacific Portfolio Consulting, an RIA catering to high net worth individuals and ERISA plans. In both positions, Odo was the resident Zephyr expert. He graduated from the University of Washington in 1996.

Jean Paul Lagarde

Jean Paul founded Advisor Resource Council (ARC) Asset Management in 2015 where he leverages expertise in portfolio construction and options contracts to reshape the risk/reward of equity market exposure. ARC manages equity and fixed income SMA strategies that combine the power of artificial intelligence with the intuition of fundamental analysis in the pursuit of better risk-adjusted returns.

Prior to ARC, Jean Paul served as a senior analyst for an RIA/Hedge Fund, as well as a sell-side analyst and institutional salesperson advising clients on their equity holdings.

Jean Paul holds a bachelor’s degree in economics and a master’s degree in business administration from the University of Dallas.

Matt Barley

Matt Barley, RICP® is Director of Advisor Sales at Magnifi by TIFIN. Prior to joining Magnifi in 2020, Matt spent more than a decade in the financial services industry. He was previously a registered representative and investment advisor at Securities America. Before that, he was an advisory consultant at National Planning Holdings and a wholesaler for Jackson National Life.

Matt holds a bachelor's degree in business administration from University of Colorado Boulder - Leeds School of Business, and is a Retirement Income Certified Professional®.

Advisory services are offered through Magnifi LLC, an SEC Registered Investment Advisor. Being registered as an investment adviser does not imply a certain level of skill or training. The information contained herein should in no way be construed or interpreted as a solicitation to sell or offer to sell advisory services to any residents of any State where notice-filed or otherwise legally permitted. All content is for information purposes only. It is not intended to provide any tax or legal advice or provide the basis for any financial decisions. Nor is it intended to be a projection of current or future performance or indication of future results. Moreover, this material has been derived from sources believed to be reliable but is not guaranteed as to accuracy and completeness and does not purport to be a complete analysis of the materials discussed. Purchases are subject to suitability. This requires a review of an investor’s objective, risk tolerance, and time horizons. Investing always involves risk and possible loss of capital.

Published in Wealth Management
Wednesday, 15 September 2021 19:26

How to Scale Client Service Without the Overhead

Artificial Intelligence is being adopted across the financial industry. In a recent poll by the World Economic Forum, executives at 151 leading financial institutions were asked questions about the prospects of AI in their business. 77% expect AI to be a critical part of their business in the next two years and 64% expect to be mass adopters. Magnifi can bring this cutting-edge technology to your financial institution. Adopters of Magnifi’s products will utilize machine learning techniques that can optimize portfolios for their clients across risk, return, themes, fees, and other factors. AI’s wide adoption is being utilized to lower high labor costs, or even better, to augment current labor for more productivity. Finally, Magnifi delivers all of this with a simple set of tools that are easy for advisors to interact with to deliver their clients the best product possible.

Published in Wealth Management
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