An increasing number of advisers have asked me about using client login credentials to obtain price, transaction, and balance information for assets held in captive accounts (e.g. a client’s active 401(k) plan that cannot be rolled over until termination from service).

As a benefit to clients, advisers are using client credentials to log in to captive accounts to copy the asset information into portfolio management software (such as PortfolioCenter, Advent, or dbCAMS).

This allows the adviser to generate a consolidated report for the client featuring all of his/her assets.  In addition, advisers can include the captive account assets in fee calculations if management of those assets is included in the asset advisory agreement with the client.

However, advisers are rightfully concerned that using client credentials to access account information can trigger custody and/or possession of client funds and subject the adviser to increasing compliance with SEC requirements.

In response, the folks over at ByAllAccounts have offered to host a webinar to address the risks and compliance concerns of managing client credentials.  The webinar will feature Karla Paxton of ByAllAccounts, Tim Simons of Ashland Capital Partners, and yours truly!

ByAllAccounts asked me to participate in the webinar in order to provide the perspective of an active adviser and how I manage the risks of using client credentials.

Here is the information on the webinar (sorry for the late notice!):

Wednesday, April 8
2:00 – 3:00PM Eastern Time
Click the image below to open the ByAllAccounts’ website and click the registration link.

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This entry was posted on Tuesday, April 7th, 2009 at 8:58 pm and is filed under Practice Management. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.