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FPPad Bits and Bytes for December 2, 2016

On today’s broadcast, Vanare becomes AdvisorEngine after a $20 million dollar investment, RightCaptial gets a favorable review, and Addepar opens up about the capabilities of its technology.

So get ready, FPPad Bits and Bytes begins now!

(WatchFPPad Bits and Bytes on YouTube)

Today’s episode is brought to you by eMoney Advisor, the leading provider of digital wealth management solutions. eMoney just introduced two new Advanced Analytics products: Advisor Analytics Pro, offering advisors and support staff deeper business insights, and Office Analytics, offering never-before-seen firm-wide insights.

eMoney Advisor

Featuring a customizable Analytics dashboard, an expansive library of new and interactive data charts, and more, eMoney’s Advanced Analytics solutions will help you put your data to work and uncover more opportunities. For more information the eMoney Analytics solutions, visit fppad.com/emoneyanalytics.

Here are the links to this week’s top stories:

Vanare gets $20M in funding from WisdomTree, and rebrands itself from Financial Planning

[First up is news from Advisor Engine, which you may recognize under the company’s former name of Vanare. The name change was carried out as WisdomTree, the exchange-traded fund sponsor and asset manager, announced a $20 million dollar investment in Advisor Engine for 36% equity in the company.

This investment is the latest example of ETF issuers getting in the automated investment service space, but remember, BlackRock acquired FutureAdvisor, Invesco acquired Jemstep, yet WisdomTree chose to make a minority equity investment. I’m just not exactly sure why they didn’t acquire the whole business, but then again, I’m not the one that has to cut a check for $50 million dollars.

So let me connect some dots. All of the automated investment services are putting downward pricing pressure on asset allocation and periodic rebalancing. So in general, margins for traditional portfolio management are being compressed. You can either add value elsewhere, or look for ways to save on operational costs for your business.

AdvisorEngine’s new capital means it likely won’t shut down anytime soon, AND, the company recently added support for custody services at Apex Clearing, which could be a potential way you reduce your operational expenses AND allow you to pass some of those savings directly to your clients, all from a white-labeled solution.

For me, that’s why this transaction is an interesting one to keep an eye on.] WisdomTree is providing [Vanare] with an injection of funds in a bid to better position itself for industrywide changes wrought by new technologies and stiffer regulations, according to CEO Jonathan Steinberg.

Is RightCapital the right fit? from Financial Planning

[Next up is news about RightCapital, as Financial Planning magazine columnist Joel Bruckenstein reviewed the financial planning software and offered his take of where it fits in the marketplace. One of the distinctive features RightCapital offers is the ability to generate simulated tax forms so you can actually see how decisions on deductions, distributions, and taxable withdrawals will impact a client’s personal tax return.

Also, just because RightCapital has a fresh and modern UI doesn’t mean it’s a solution only for younger clients. RightCapital’s robust modeling of asset withdrawal strategies was highlighted in the review, allowing clients to simulate the best withdrawal strategies when factoring in Social Security and tax-deferred tax-free retirement accounts.

Of course, there’s much more to the review, but overall, RightCapital gets recommended as a more-than-adequate application for the mass affluent market. A 14-day free trial is available so you can evaluate the solution for your clients’ needs.] The middle ground in financial planning software is exactly the niche that RightCapital is targeting, according to co-founder Shuang Chen.

Addepar’s strategy: Focus on HNW, arm advisers with digital tools from Financial Planning

[But, if your business serves high net-worth households, this week’s final story on Addepar should be worth taking note. The investment management technology company appears to be opening up a bit more about exactly what it is they do.

In an interview with SourceMedia managing editor Suleman Din, Addepar’s CEO Eric Poirier described how much of the high net-worth marketplace has been historically addressed by custom Excel spreadsheets.

When clients start identifying assets like their limited partnership interests, equity investments, venture capital, and so on, most off-the-shelf solutions just aren’t compatible with the esoteric properties of these assets. But that’s been Addepar’s focus for five years, according to Poirier.

That kind of development sets Addepar apart as the Ferrari of the investment management technology space and is appropriate for households that require that kind of horsepower, and while that power certainly scales down to more traditional accounts with stocks, ETFs, and mutual funds, I suspect you’ll find it’s a bit overkill in capabilities and price if your business primarily serves the needs of mass affluent households.] While other fintech startups claimed they would disrupt the wealth management industry, Addepar has taken the tack that it can make it better.

Here are stories that didn’t make this week’s broadcast:

Future ready: Seismic moves for digital wealth management from Financial Planning

A close examination of the [2016 FP Tech Survey] data reveals other interesting trends, including which broker-dealers, custodians and third-party tech providers seem to be the best at meeting advisers’ needs, where advisers can get a good return on tech investment and how the next generation of advisers approaches tech.

Digital advice expects big growth from banks from Financial Planning

Digital advice as an industry will take off once it is built into retail banking, capitalizing on an investor segment ignored by wealth managers, says SigFig CEO Mike Sha. That’s why, announcing his firm’s newest partnership with Citizens Bank, Sha predicts his platform will reach half of all U.S. households by next year.

 

Watch FPPad Bits and Bytes for December 2, 2016

Watch FPPad Bits and Bytes for December 2, 2016

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2016 Black Friday deals for video creators

I’ve aggregated the best Black Friday deals I could find on audio and video gear you can use to create online content for your business.

Check out the list below, and if you find any great deals I haven’t listed, leave a link in the comments below or send me a tweet to @billwinterberg.

NOTE: Links to products on Amazon are my affiliate links, so I earn 4 to 6% if you use the links to purchase. Also, links to online sites may not reflect Black Friday pricing until Thursday or Friday, so check back often if the prices don’t yet match the prices I cite in this post.

Last updated November 26, 2016 at 9:51 AM

GoPro Hero 5 Black/Hero 4 Silver

gopro-hero-5-blackTarget has the GoPro Hero 5 Black (view the Target Black Friday ad) for the regular price of $399, but for Black Friday the purchase comes with a $60 Target gift card.

For an even better deal, Sam’s Club has a GoPro Hero 4 Silver bundle at $199 (view Sam’s Club Black Friday ad) with a dual charger, extra battery, and a 16GB microSD memory card. That’s a great deal for a more-than-adequate GoPro, since the Hero 4 Silver is what I use for my own action shots. Amazon has the Hero 4 Silver for $278 with no accessories and Walmart has it for 293!

Canon EOS Rebel T5i/T6i

t6i-250Best Buy has the Canon EOS Rebel T6i bundle for $699, (view the Best Buy ad) which includes an 18-55mm lens, a Rode VIDEOMIC GO and a 32GB SD memory card. Why do you want the T6i? Because it has a flip-out LCD screen, so you can view the screen when you are filming while holding the camera towards you (aka “selfie” mode).

The Best Buy T6i bundle is a much better deal than Target’s sale of just the camera and lens for $649. That Rode VIDEOMIC GO and memory card are worth more than $50!

Amazon has last year’s Canon EOS Rebel T5i version available with a “Video Creator Kit” for $649 that includes a Rode VIDEOMIC GO and a 32GB SD memory card. The bundle also includes extra batteries and a carrying bag. For just $50 more on the Best Buy bundle, you’ll step up in sensor quality (see below) but give up a battery and a carrying bag.

The biggest difference between the T6i and T5i is the sensor, with the T6i featuring 24.2 megapixels and the T5i at 18 megapixels. Honestly, if you’re uploading video you shoot in 1080 HD to YouTube, you’re probably not going to see a noticeable difference between the two. But if you plan on using the camera for filming in front of a green screen, you’ll want to go with the bigger sensor of the T6i (with the caveat that perhaps a completely other camera is in order for green screen work with a full-frame sensor, lower compression, and on and on, but that will cost thousands of dollars).

Both the T6i and the T5i come with the standard 18-55mm lens, which is fine to first get to know how to use the camera, but you’ll likely want to purchase a wide angle lens (like this Sigma 10-20mm f/3.5 for $449) that works with this camera.

Mevo by livestream

You can get the Mevo bundle from livestream this week for $549 which includes the camera, Mevo Boost external battery and network adapter, and a carrying case.

If you don’t know how you could use the Mevo in your business, watch the video below I made at the livestream booth the 2016 NAB Show.

Apple MacBook

My 13″ MacBook Pro is a workhorse, supporting real-time video editing and uploading while on the road. For Black Friday, Best Buy has select MacBooks up to $200 off, so check their website and see if any of their deals are ones you can’t pass up.

LED Lighting

The Fotodiox Black Friday deals were only available on Friday, so I’ve removed the links to the LED lighting that was on sale.

Tripods

Best Buy has this Sunpak TravelLite Pro 63″ tripod for $49 this week (view the Best Buy ad). While not as high quality as a MeFOTO or Manfrotto collapsible tripod, the Sunpak doesn’t come with the $200 price tag.

Speaking of Manfrotto, they have Black Friday specials including the BeFree One tripod for $99 (a great deal while supplies last, but I didn’t see any inventory when I checked Thursday at 9:35 AM) and $100 off select carbon fiber tripods.

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FPPad Bits and Bytes for November 18, 2016

On today’s broadcast, Wells Fargo announces a partnership with SigFig, Cetera’s computers systems suffer a two-day outage, lessons from a hack at Lincoln Financial, and more.

So get ready, FPPad Bits and Bytes begins now!

(WatchFPPad Bits and Bytes on YouTube)

Today’s episode is brought to you by eMoney Advisor, the leading provider of digital wealth management solutions. eMoney just introduced two new Advanced Analytics products: Advisor Analytics Pro, offering advisors and support staff deeper business insights, and Office Analytics, offering never-before-seen firm-wide insights.

eMoney Advisor

Featuring a customizable Analytics dashboard, an expansive library of new and interactive data charts, and more, eMoney’s Advanced Analytics solutions will help you put your data to work and uncover more opportunities. For more information the eMoney Analytics solutions, visit fppad.com/emoneyanalytics.

Here are the links to this week’s top stories:

Wells Fargo Goes Robo With SigFig Wealth Management from WSJ.com, and

Wells Fargo notice of an application for an exemption from certain requirements of rule 3a-7(a)(4)(i) under the Investment Company Act of 1940 from SEC.gov

[First up is news from Wells Fargo, as the bank, which finds itself in the middle of a very public firestorm over opening unauthorized accounts, announced this week that it is partnering with SigFig to release an automated investment service to customers of Wells Fargo Advisors sometime in the first half of 2017.

Other than the potential release date, there really wasn’t any concrete information on pricing or the types of investments to be used in the service. Will they be Wells Fargo mutual funds, or third-party ETFs? As of today, Wells Fargo doesn’t offer its own ETFs, but earlier this year, the company filed an exemptive relief request with the SEC, signaling some intent to enter the ETF space.

But that opens the door for potential problems with the Department of Labor fiduciary rule, highlighted by industry Nerd-In-Chief Michael Kitces, where automated investment services that recommend investments in proprietary products, Kitces calls out Schwab Intelligent Portfolios and BlackRock’s FutureAdvisor, do not qualify under the Level Fee Fiduciary exemption because of the variable compensation inherent in an allocation of proprietary ETFs!

So, this is all “industry” stuff, and not all that applicable to your business, but here’s my point. All the big banks, all the incumbent financial institutions are boarding the automated investment bandwagon. Sooner rather than later, your clients and prospects are going to get solicited by the very institutions they use today.

And clients are expecting an experience like Uber, but you’re still driving around a dirty taxi that has to be flagged down with a hand in the air that doesn’t have a functional credit card machine!] Wells Fargo & Co.’s brokerage arm is partnering with SigFig Wealth Management LLC to bring automated investment advice to clients, the latest example of how traditional wealth-management firms are working with startup robo advisers to offer new digital tools to investors.

Cetera Brokers Endure Two-Day Systemwide Crash from AdvisorHub

[Next up is news about Cetera Financial Group, as the independent broker dealer encountered a company-wide systems outage that affected 9,000 brokers as well as the company’s back-office and operations teams.

According to an AdvisorHub article, the outage started on Monday, and one broker with First Allied reported that he could not sign in to view emails, access performance reports, or even call Cetera using their standard phone number. Cell phone numbers were eventually sent out on Monday evening.

In a firm-wide conference call on Tuesday afternoon, Cetera Chief Executive Robert Moore apologized for the disruption and said systems had been fully restored, and added that no data had been compromised through hacking or any other unauthorized access.

So, let this be a reminder that if it’s been a while since you tested your business continuity plan, next week’s Thanksgiving break might be a good time to do so. It doesn’t matter if you manage your own systems or leverage the resources of a broker-dealer, you need to verify how you can perform the essential parts of your business in the event of a disruption.

Attackers are launching denial of service attacks every day against financial institutions, so it’s important that you know exactly what you need to do when the systems you depend aren’t available.] Just six months after emerging from bankruptcy, independent brokerage company Cetera Financial Group experienced a companywide systems outage Monday and Tuesday that walled off brokers at its seven operating broker-dealers from customer data, emails and other vital account management functions.

Lincoln Financial Unit Gets $650K Fine After Server Hack from Law360, and

LETTER OF ACCEPTANCE, WAIVER AND CONSENT NO. 2013035036601 at FINRA.org

[And speaking of attackers, my last story is about Lincoln Financial Securities, an affiliate of Lincoln Financial Group, as the company paid a $650,000 fine imposed by FINRA for failing to safeguard customer data stored on a cloud server used by one of its OSJs.

Sometime in 2012, hackers were able to access the could server configured by a third-party vendor and obtain records on approximately 5,400 customers. The FINRA Letter of Acceptance doesn’t say HOW the server was compromised, and didn’t identify what kind of server was in use. Was it an FTP server, a service like Dropbox, a proprietary server with remote access, or something else?

But more troubling to me is that FINRA goes on to say that the firm “failed to take adequate steps to monitor or audit the vendors’ performance.” Now hold on. One benefit of leveraging third-party vendors is that they bring expertise to the table that the firm doesn’t have, like, oh, I don’t know, cybersecurity expertise.

But for FINRA to say that the firm failed to test and verify the security of the cloud servers, that just doesn’t seem right. The firm doesn’t HAVE the expertise in cloud server security, which is why the firm hired the third-party vendor in the first place, but now FINRA says that the firm is the one that has to verify the security of the third-party vendor that it hired to bring security expertise to the firm? How is that even possible?

What I do know is FINRA just levied a heavy fine on a firm because their third-party vendor had a hole in their security that was exploited by hackers, and in my opinion, that’s a troubling precedent that has been set.] A Lincoln Financial Group subsidiary on Monday agreed to accept a $650,000 fine leveled by the Financial Industry Regulatory Authority and implement tighter security protocols after hackers in mid-2012 accessed its cloud server and lifted the confidential records of roughly 5,400 customers.

Here are the stories that didn’t make this week’s broadcast:

WisdomTree Makes Strategic Investment in AdvisorEngine from WisdomTree

WisdomTree Investments, Inc. announced that it has invested $20 million for a 36% equity interest in AdvisorEngine, formerly known as Vanare, an end-to-end digital wealth management platform which enables individual customization of investment philosophies.

PIEtech℠, Inc. Unveils Integration with MX for Aggregation and Personal Financial Management Functionality from PRWeb

PIEtech℠, Inc., the creator of the industry’s leading financial planning software, MoneyGuidePro®, today unveiled a new integration with MX to deepen the availability of aggregation for MoneyGuidePro® subscribers and add personal financial management (PFM) functionality via the client portal.

Combined Envestnet and Yodlee Data Offering Supports Morgan Stanley Wealth Management from PRNewswire.com

Envestnet | Yodlee and its parent company Envestnet, today announced a partnership for the combined organization, providing data aggregation, digital applications and data reconciliation solutions to Morgan Stanley, one of the largest, most established wealth management businesses in the industry.

 

Watch FPPad Bits and Bytes for November 18, 2016

Watch FPPad Bits and Bytes for November 18, 2016

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Rapid fire fintech updates from Twitter Moments

Twitter recently added the ability for all users to create their custom “Moments” feed. I took the opportunity to test Twitter Moments to create a list of rapid-fire fintech updates from many of the top vendors and service providers in the industry.

Take a look at the Moment below and let me know what you think!

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FPPad Bits and Bytes for November 4, 2016

On today’s broadcast, Brian Shenson updates Schwab’s technology roadmap, Riskalyze raises $20 million in capital, SS&C acquires Salentica, and more.

So get ready, FPPad Bits and Bytes begins now!

(Watch FPPad Bits and Bytes on YouTube)

Today’s episode is brought to you by eMoney Advisor, who just announced their Fiduciary Framework initiative to help advisors and firms comply with the recent DOL Fiduciary Rule. The framework weaves DOL-friendly solutions into each stage of the advisor-client lifecycle—like client acknowledgments, event logs, best interest workflows, and more—all within the existing integrated wealth management platform.

eMoney Advisor

For more information on Fiduciary Framework, visit fppad.com/emoneyadvisor

Here are the links to this week’s top stories:

Riskalyze Raises $20 Million Growth Equity Investment to Accelerate Risk Number® and Robo Platforms for Independent Financial Advisors from PRNewswire

[Now first up, I attended Schwab IMPACT 2016 in San Diego last week and posted a few videos about Schwab’s technology updates, including a detailed discussion with Brian Shenson about the phase out of Integrated Office, new providers in OpenView Gateway, and the much anticipated timeline of Portfolio Connect. It’s an informative interview, and stick around for the tour of OpenView MarketSquare where I Brian and I practiced our sprints in the massive exhibit hall.

And then on Monday this week, Riskalyze announced that the company secured $20 million in capital from FTV Capital to fuel its future growth. Here’s CEO Aaron Klein on how this additional capital will help Riskalyze execute on its mission.

Aaron Klein: “Our mission every day is making sure that we’re empowering those advisors to really build fearless investors, to align the world’s investments with each investor’s Risk Number, and you know, for us finding the right partner to allow us to continue the incredible growth we’ve seen so far was the right move.”]

SS&C to Acquire Leading Advisor CRM Solution, Salentica from PRNewswire

[Next up is news from SS&C Technologies, which you should recognize as the company that acquired Advent Software for $2.7 billion earlier this year. Last week, SS&C announced it acquired Salentica, a professional services firm known for customizing Salesforce and Microsoft Dynamics CRM for institutions and large RIAs. Terms of the deal were not disclosed.

So this acquisition is important for its vertical integration, as thousands of advisors who already use Advent or Black Diamond for portfolio management today should soon benefit from better integrations of Salesforce and Dynamics CRM all from the same provider.
This also helps SS&C close the gap with a competitor like Envestnet | Tamarac, who has offered an all-in-one technology solution to advisors for several years.

But on the other hand, not all advisors want to be captive to an all-in-one provider, and prefer the best-of-breed approach to their technology, so with Salentica now under the ownership of SS&C, we’ll have to see how the political aspects of this relationship play out in the near future.
Nevertheless, I’m optimistic that SS&C will support Salentica’s integrations with a variety of portfolio management providers, but I definitely would proceed with a little more caution if my business used a solution other than Advent and Black Diamond.] SS&C Technologies Holdings, Inc., a global provider of financial services software and software-enabled services, today announced its acquisition of leading CRM solution Salentica.

TD Ameritrade to Buy Scottrade in $4 Billion Deal from the New York Times, and

TD Ameritrade Announces Essential Portfolios Robo-Advisor from BusinessWire

[And finally, I’m wrapping up with two updates involving TD Ameritrade, starting with the announcement of the acquisition of Scottrade for $4 billion dollars, then followed up by the soft launch of Essential Portfolios, the company’s own automated investment service for retail investors.

First, the Scottrade acquisition is likely to affect advisors with under $10 million in assets under management, as Scottrade has historically been welcoming of advisors with smaller accounts. So over the next year or two, I’d expect smaller advisors to be under pressure to grow their assets under management, or find another custodian altogether like Shareholders Service Group, or join a membership group like the XY Planning Network that leverages the size of its network to facilitate business with TD Ameritrade Institutional.
Either way, I think it means structural changes are on the horizon for dozens of smaller advisory firms.

And the second story about Essential Portfolios adds yet another retail-facing automated investment solution to the crowded marketplace. It features a $5,000 account minimum, fees of 30 basis points, and offers just five model portfolios, each made up of five ETFs, with allocations recommended by Morningstar Investment Management that are automatically rebalanced.

Look, clients are getting bombarded with all this marketing about low-cost, automated, intelligent investing services from nearly every provider in the business. So unless your marketing pockets are as deep as theirs, you’re going to have to craft a message that your technology rivals that of the automated services, and that you offer advice and services that go way beyond what the low-cost solutions provide. Not only do you have to say it, but you have to do it.] TD Ameritrade announced on Monday that it would acquire Scottrade Financial Services, a rival discount brokerage, for $4 billion, in a bid for scale at a time when small investors are losing their taste for stock trading.

Here are the stories that didn’t make this week’s broadcast:

Web Design Pros Enter the Financial Advisory Industry with the Public Launch of Twenty Over Ten from MarketWired

Twenty Over Ten, an unparalleled, compliant website-builder, today announced its formal public launch. Cofounded by Penn State Associate Professor of Graphic Design Ryan Russell and Designer and Developer Nick Dimatteo, Twenty Over Ten helps financial advisors create beautiful and compliant websites tailored to their unique brands.

PIEtech℠, Inc. to Complete Deep Integration With Riskalyze Creating the Most Powerful Client Risk Analysis Experience from PRWeb

PIEtech℠, Inc., creator of the leading financial planning software, MoneyGuidePro®, announced today that it is building a multi-faceted, deep integration with Riskalyze, the risk alignment platform founded upon the Risk Number®.

Junxure Cloud, Riskalyze Announce Integration from PRNewswire

Junxure, the industry leading CRM solution and technology company for financial advisors, this week announced new enhancements to its cloud-based CRM platform, Junxure Cloud®. As part of its ongoing work to integrate with leading platforms serving advisors, Junxure Cloud has partnered with Riskalyze, the industry-leading risk alignment platform and inventor of the Risk Number®, to integrate the two popular systems.

Get LastPass Everywhere: Multi-Device Access Is Now Free! from LastPass

I’m thrilled to announce that, starting today, you can use LastPass on any device, anywhere, for free. No matter where you need your passwords – on your desktop, laptop, tablet, or phone – you can rely on LastPass to sync them for you, for free.

Passing the Baton, Again from Wealthfront

After an amazing tour of duty, Adam Nash is handing the baton back to me [Andy Rachleff]. While Nash will be transitioning out of an operating role at the company, he will continue to play a strategic role as a member of our Board of Directors.

FOLIOfn, Inc. Acquires Leading Responsible Investing RIA, First Affirmative Financial Network from PRNewswire

FOLIOfn, Inc. announced today that it has acquired First Affirmative Financial Network, one of the nation’s most prominent registered investment advisor firms specializing in sustainable, responsible, impact (SRI) investing.

Invessence and PrairieSmarts Partner to Arm Advisors with Better Risk Assessment Tools for Easier DOL Compliance from PRWeb.com

Digital wealth management technology provider Invessence announced today that it has partnered with PrairieSmarts, an innovative risk analytics firm, to provide risk assessment tools for financial advisors and their clients. Enhancing Invessence’s comprehensive digital wealth platform, the robust risk tools from PrairieSmarts will assist advisors in calculating, documenting and managing the alignment of a client’s risk profile with a compliant portfolio recommendation.

 

Watch FPPad Bits and Bytes for November 4, 2016

Watch FPPad Bits and Bytes for November 4, 2016

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Exclusive: Riskalyze Raises $20 Million from FTV Capital

Riskalzye co-founder and CEO Aaron Klein talks about raising $20 million from FTV Capital and what financial advisers should expect as a result of the transaction.

http://www.riskalyze.com/
http://www.ftvcapital.com/

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FPPad Bits and Bytes for October 21, 2016

On today’s broadcast, the World’s Most Famous Hacker shares his top cybersecurity tips, Fidelity previews its next-generation advisor technology platform, and get rapid-fire news from three of the fastest-growing portfolio management providers.

So get ready, FPPad Bits and Bytes begins now!

(Watch FPPad Bits and Bytes on YouTube)

Today’s episode is brought to you by Envestnet | Tamarac, providers of Advisor Xi, an industry-leading fully integrated web-based suite for RIAs. Tamarac’s Advisor Xi unifies portfolio management, modeling, rebalancing, trading, billing, and reporting with a fully customizable client portal and enterprise-grade CRM.

envestnet-tamarac-600

If you’re going to Schwab IMPACT next week, be sure you make some time to visit the Envestnet |Tamarac booth for a live demo on their latest client portal and financial planning capabilities.

Here are the links to this week’s top stories:

See the #topsecurityshow tweets from Kevin Mitnick’s cybersecurity presentation

[Now continuing with the National Cyber Security Awareness theme this month, my first story is about Kevin Mitnick, the World’s Most Famous Hacker, as he presented some jaw-dropping examples of cyber and social engineering attacks that are being used today to compromise businesses of all kinds, including financial advisory firms.

Envision Consulting hosted the event in Washington DC and brought me in as the master of ceremonies, so I wanted to be sure I shared my top three takeaways with you.

First, Mitnick advised that none of the computers in your business or home should have any kind of peer-to-peer sharing software installed. This software is usually used to download pirated movies and music across peer-to-peer networks, so while you might not be downloading any pirated content, it’s possible that some of your colleagues or even your kids are doing so.

Mitnick said that some peer-to-peer software exposes the contents of a computer’s ENTIRE hard drive to the sharing network without the user’s knowledge, which is never a good thing, so you need to be sure it’s not installed on any of your systems.

Second, Mitnick showed how hackers can use a custom wireless access point to mimic public WiFi hotspots and perform man-in-the-middle attacks on your devices. For about $100, hackers broadcast their own hotspot pretending to be attwifi or free airport wifi, wait for your device to automatically connect, and then intercept the data your device sends back and forth.

So whenever you’re in a public place, turn your wifi connection off and use your mobile carrier’s network, or if you must connect to an untrusted WiFi network, use a virtual private network, or VPN, to encrypt the traffic sent to and from your device.

And third, instead of opening email attachments directly with Microsoft Word or Adobe Acrobat, consider using Google’s file preview built into the Chrome browser. This way, you won’t risk executing what Mitnick calls “weaponized” files, because Chrome will render a preview of the document in the web browser first, helping you determine if the file looks legitimate or if it seems suspicious. You can check the plugin settings in Chrome to see if the PDF viewer is enabled for your computer.]

Fidelity® Goes to Market with Next-Generation Advisor Technology Platform from BusinessWire

[Next up is news from Fidelity Investments, as the company offered a preview of its automated investment solution for advisors called the Fidelity Automated Managed Platform, a solution co-developed with eMoney Advisor expected to be in pilot in the late first quarter of 2017.

Now if you take a look at the linked article, you’ll see a few screenshots of the solution powered by the eMoney online experience, so this doesn’t appear to be a repackaged version of Fidelity Go that is offered to retail clients, and the portfolio allocations are the same as those in Fidelity Go which are managed by the sub-advisor Geode Capital Management.

Unfortunately the preview didn’t cover any specific pricing of the Fidelity Automated Managed Platform, and advisors not already using eMoney will have to purchase at least the eMX Select subscription that’s somewhere around $1,500 to $2,000 per year, which is an interesting way to get advisors to buy more eMoney subscriptions. The press release also includes descriptions of the coming Wealthscape total advisor platform, Wealthscape Portfolio Tools, Wealthscape Regulatory Early Warning, and more. There’s a lot to take in from the press release, so be sure to follow the link included with this week’s top stories if you want to get completely up to speed.]

Envestnet | Tamarac Offers Goals-Based Reporting in Advisor View™ & Client Portal from PRNewswire, and

BAM Advisor Services Selects Orion as Exclusive Portfolio Accounting Software for RIAs from Marketwired, and

Addepar Surpasses $500 Billion in Assets and Opens Platform API for Integrations from PRNewswire

[And I’m running out of time, so let me finish with a rapid-fire update that starts with Envestnet | Tamarac, as their Advisor View client portal integration with MoneyGuidePro is now officially in production, then Orion Advisor Services, as the company announced a partnership with BAM Advisor Services to provide portfolio management software services to their collective $27 billion dollars in assets, and finish with a surprise update from Addepar, which used a rare press release to announce that the company surpassed $500 billion in assets managed on its platform and the rollout of the Addepar Open API for third party developers.]

 

Watch FPPad Bits and Bytes for October 21, 2016

Watch FPPad Bits and Bytes for October 21, 2016

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FPPad Bits and Bytes for October 14, 2016

On today’s broadcast, one Wells Fargo broker loses her job after a client spoofing attack, Envestnet acquires Wheelhouse Analytics, and another day, another new robo advisor.

So get ready, FPPad Bits and Bytes begins now!

(Watch FPPad Bits and Bytes on YouTube)

Today’s episode is brought to you by Envestnet | Tamarac, providers of Advisor Xi, an industry-leading fully integrated web-based suite for RIAs. Tamarac’s Advisor Xi unifies portfolio management, modeling, rebalancing, trading, billing, and reporting with a fully customizable client portal and enterprise-grade CRM.

envestnet-tamarac-600

On October 20th, two innovative and rapidly growing firms will share how they leveraged the Advisor Xi Suite in their business during an interactive webinar. Space is limited, so secure your spot today by visiting http://fppad.com/tamarac

Here are the links to this week’s top stories:

FINRA Disciplinary Action for Kathleen Kincade (enter Kathleen Kincade in the Individual Name search field)

[Now October is National Cyber Security Awareness Month, so my first story is about an unfortunate cybersecurity incident involving a broker from Wells Fargo. According to a FINRA letter released this month, Kathleen Kincade was targeted by attackers who used spoofed client emails to submit three wire transfer requests for nearly $350,000, two of which were processed before Wells Fargo became aware of fraudulent activity.

One wire transfer for $99,000 was reversed, but the company ultimately had to make the client whole for the remaining $250,000 that was transferred.

The letter goes on to say that Kincade used Wells Fargo’s forms to falsely report that she verbally confirmed the wire disbursement instructions with the client, which was not the case. Now I know you’ve heard me say time and time again that attackers are impersonating clients and are targeting you to get you to send money where it shouldn’t go.

So take this as a reminder that you need to continue to be vigilant and suspicious with respect to sporadic requests for client withdrawals, and always, ALWAYS follow a process to authenticate the identity of your client, usually with a phone call, or else you won’t allow any fund transfers to be processed.]

Envestnet Acquires Wheelhouse Analytics from PRNewswire

[Next up is news from Envestnet, as the company announced the acquisition of Wheelhouse Analytics in a move executives said will provide more insight on key performance indicators for asset managers, enterprises, and financial advisors.

Terms of the deal were not disclosed, and I have to admit, Wheelhouse Analytics was not on my radar at all until this announcement, so I checked out their website and learned about their solutions for data analytics, online education, and document management for sales and business development. This is more business intelligence than it is financial technology, but I can see how Wheelhouse Analytics can connect to the data stored in the Envestnet platform and ultimately deliver timely insight to financial advisors.

Also, think back to Envestnet’s acquisition of Yodlee last summer, and consider how data on client spending and consumption can generate key indicators on which clients might warrant a follow up phone call, versus those who are on a steady path to meet their goals. I think this is worth watching in the near future.] Envestnet, Inc. announced today that it has acquired Wheelhouse Analytics LLC, a technology company that provides data analytics, mobile sales solutions, and online education tools to financial advisors, asset managers and enterprises

Zacks Advantage Form ADV

Merrill Egde Guided Investing Form ADV

[And I think it’s safe to say that my broadcast wouldn’t be complete without a little robo news, so up first, Zacks Investment Management announced the launch of Zacks Advantage, an automated investment service built on the Schwab Intelligent Portfolios platform that adds a bit of active management to balanced portfolio investing. The minimum account size is $5,000, and fees are 50 basis points for accounts up to $100,000, which drops to 35 basis points for accounts greater than $100,000 according to the Form ADV.

And Bank of America offered more information about Merrill Edge Guided Investing, the company’s automated service that also has a $5,000 account minimum, but charges 45 basis points no matter how much money is invested in the account.

So, I want to ask two questions about all this robo stuff. First, if all the other financial firms have a low-cost automated investing solution, why don’t you? If the solutions are so commonplace, prospects might think that your firm is behind the times because you’re not leveraging a solution that is offered pretty much everywhere else.

But second, assuming you DO provide an automated investing solution, the next question you’ll face is why should a prospect choose your business over all the others, when they appear to do the same thing? And THAT is your opportunity to communicate why your business is different, identify your value proposition, and describe all the things you do that go far beyond portfolio asset allocation and frequent rebalancing.

No robo solution can compete with that!]

 

Watch FPPad Bits and Bytes for October 14, 2016

Watch FPPad Bits and Bytes for October 14, 2016

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FPPad Bits and Bytes for September 30, 2016

On today’s broadcast, get updates on hackathons hosted by Orion and eMoney, Motif Investing introduces subscription pricing, Betterment automates asset location preferences, and more.

So get ready, FPPad Bits and Bytes begins now!

(WatchFPPad Bits and Bytes on YouTube)

Today’s episode is brought to you by Envestnet | Tamarac, providers of Advisor Xi, an industry-leading fully integrated web-based suite for RIAs. Tamarac’s Advisor Xi unifies portfolio management, modeling, rebalancing, trading, billing, and reporting with a fully customizable client portal and enterprise-grade CRM.

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On October 20th, two innovative and rapidly growing firms will share how they leveraged the Advisor Xi Suite in their business during an interactive webinar. Space is limited, so secure your spot today by visiting http://fppad.com/tamarac

Here are the links to this week’s top stories:

Fuse 2016: Day One and eMoney Advisor Summit 2016: Hack-a-thon Day One

Now you’ve probably noticed that it’s been a few weeks since my last Bits and Bytes broadcast, and that’s because I’ve attended not one, but two hackathon events hosted by financial technology companies. The first was the Fuse event in Park City, Utah, where Orion Advisor Services assembled developers from dozens of companies to present innovative ways they leverage the Orion Notifications platform. My producer Steve and I vlogged each day of the event, which I highly recommend you watch to find out who claimed the coveted Best in Show award.
And then two weeks later, eMoney hosted their own hackathon event, which had a bit of a different structure from Fuse, as four groups of advisors teamed up with eMoney product, design, and engineering employees to build new planning experiences onto the existing eMoney platform. We made vlogs of this event, too, which I also think is worth your time to watch.
Now, I get that hackathons generate good PR and marketing buzz for the host companies, but quite honestly it’s exciting to see activities like these that promote innovation and experimentation with technology that’s all about helping you serve your clients AND be a better business owner.

Motif Enters Subscription Economy, Introduces Motif BLUE from BusinessWire

Now, moving on to top stories, let’s start with Motif Investing, as the company just introduced a new subscription-based service called Motif BLUE. If you remember back in December 2014, I awarded the Best Back-Office Technology to the Motif Advisor Platform, but that was before the company switched from a flat monthly fee per customer to an AUM-based fee schedule.
But with Motif BLUE, the monthly fee makes a comeback, as customers can pay up to $19.95 a month to invest in three motifs, get auto-rebalancing of professional motifs, and trade motifs three times per month commission free.
So my theory is, customers can use the Motif BLUE Starter plan at $5 a month to mimic one of the asset allocations of the popular automated investment services out there, but instead of paying an AUM-based fee of, oh, 25 to 35 basis points, customers pay Motif roughly $60 a year.
Do the math, and Motif is cheaper when assets go above about $20,000 versus an annual fee of 35 basis points. Now I admit, there are still other differences between Motif Investing and automated investment services, but I think you can sense I believe that fees for investing software should not be based on the size of the assets being managed, and I expect that trend to grow as customers gravitate towards subscription-based pricing models.

Tax-Coordinated Portfolio™: The Latest Breakthrough in Tax-Smart Investing from Betterment

But to up the ante, Betterment announced its own new offering called the Tax-Coordinated Portfolio service, where Betterment automatically implements asset location preferences across taxable and tax-deferred or tax-exempt investment accounts.
Now the concept of asset location preferences is nothing new, but what IS new is the ability to use software to automatically manage location preferences on the fly, such as when clients make one-time deposits or withdrawals across their various accounts. Betterment confirmed that this service will be available to Betterment for Advisors customers, so when I go back to that whole discussion around fees a moment ago with Motif Investing, one could argue that higher fees could be justified because of nuanced differences like automated asset location management.

Quovo Unveils Advisor Dashboard, Arming Financial Advisors With Enriched Client Data Insights in an Intuitive User Interface from Marketwired

And look, if you want to effectively mange asset location preferences, you really need to see all of your clients’ assets and accounts, which leads me to my final story that comes from Quovo, as the company announced the release of the Quovo Advisor Dashboard. The dashboard allows advisors to quickly view information on both assets under management as well as held-away assets, easily synchronize new client accounts, and generate simple reports based on the data obtained by Quovo.
Now I know aggregating held-away assets has always come with its share of challenges (like expired account credentials), but with the Department of Labor fiduciary requirements coming in April next year, how will you be able to defend the advice you provide to clients if you don’t have a clear picture of their assets and liabilities?
You can certainly get those details without using account aggregation, but it just won’t be very efficient, and with direct-to-consumer providers like Personal Capital and Betterment including account aggregation in their solutions, well, these are the new table stakes for technology in your business. So if you’re not using solutions like Quovo or alternatives like Morningstar ByAllAccounts, Aqumulate, eMoney, Wealth Access, Yodlee and others, there’s still time to add one of these to the tools you use today.

Here are several stories that didn’t make this week’s broadcast:

Riskalyze Rolls Out Coverage for Individual Bonds from Riskalyze

It’s a request we’ve heard from a lot of advisors: make it simple to include individual bonds in a portfolio on Riskalyze. We’re excited to announce that coverage for over 30,000 individual corporate, government and municipal bonds will arrive on October 1.

Qumram launches fully-compliant WhatsApp social media record keeping from Qumram

Despite end-to-end encryption, Qumram enables financial services firms to meet client demand for social media interaction, via WhatsApp, without compromising compliance.

Save time with smart scheduling in Google Calendar from Google

If you’re using G Suite, “Find a time” already lets you set up meetings much faster in Calendar on Android. Today it’s coming to iOS and by the end of the year, the web.

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eMoney Advisor Summit 2016: Hack-a-thon Winner

eMoney hosted its first-ever Hack-a-thon at this year’s Advisor Summit in Dana Point, CA.

At the conclusion of the conference, four teams presented their solutions to a room full of judges and advisor attendees, where one team was ultimately selected as the winner of the hack-a-thon.

Get my summary of each team’s hack-a-thon creation in the video above, and then see how the winner was revealed on stage to close out the event.

(Watch the eMoney Hack-a-thon winner presentation video on YouTube)

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