As I speak with advisors, I find many who have made the business decision to begin using account aggregation to gather and report on outside assets. I would guess that most are already familiar with the benefits of aggregation. Some of these advisors, however, are hesitant to get started because they don’t know what information is going to be needed and don’t want to ask their clients for it. Today I’m going to lay out what you’ll need to know and how to gather it.
Chances are you fall into one of these three groups:
You do not directly manage your clients’ outside assets such as annuities, or employer sponsored retirement plans, but are looking to start
You manage and report on your clients’ outside assets but do not have their Login/Access URL
You manage and report on your clients’ outside assets and have their Login/Access URLs (or advisor-level access to the data)
How it Works
ByAllAccounts’ aggregation technology automates the retrieval, clean-up, and delivery of Internet-accessible financial account data (positions, balances, transactions). It collects online account information in daily updates, from accounts at thousands of custodians. This aggregation technology needs to know the name of the institution where a specific client account is held and also the specific URL used by you or your client to access the account (See example below).
The ByAllAccounts Template for gathering Login/Access URL data
Often an advisor will come to us and say they want us to gather their clients’ account information at Fidelity. We reply, which Fidelity? We gather information from Fidelity AdvisorXpress, Fidelity Bank, Fidelity IWS, Fidelity NetBenefits, and many more.
Search our 4,000+ Data Sources
ByAllAccounts provides connectivity to thousands of data sources (e.g., Fidelity Net Benefits). We add one or more new direct feed sources each month and one or more other sources each day.
You don’t currently manage/report on your clients’ outside assets but are looking to start
If managing or reporting on outside assets is new then you’ll want to begin by finding out how many outside assets your clients have, which institutions they are with and what the login information is. Worried that your clients won’t want to pay for this?
In a recent article Sheryl Rowling said “When I informed clients that we could now integrate management of their 401(k)s and other outside accounts (such as annuities and life insurance investments) along with the rest of their portfolios, the only reaction was excitement. Not one client complained about higher fees.”
Next step: Request a template that you can use to gather Login/Access URL information
You already manage/report on your clients’ outside assets but don’t have the Login/Access URL
Chances are if you already report on your clients’ outside assets you may have paper copies of their statements that someone manually enters into your portfolio accounting system. The next time you have a face-to-face client meeting use our template to gather the Login/Access URL your client uses to view his/her account information.
Excerpt: For quite some time, we have been using automated systems to gather and keep track of investments and account activity for the brokerage accounts we manage for you. Historically, however, we have not had an automated solution for gathering similar information from accounts we do not directly manage for you…such as annuities, or your employer sponsored retirement plans, including 401(k) and 403(b) accounts.
Next step: Request a templated letter to put on your firm’s letterhead and send to clients that have outside assets you want to aggregate electronically. The letter helps you explain the Login/Access URL information that you need.
You already manage/report on your clients’ outside assets and have the Login/Access URL or advisor-level access to the data
If you find yourself in the last of these three groups – you already have the login/access URL information for your clients’ outside assets – then you’re ready to get started. With access to more than 4,200 sources chances are we already support the specific financial institution you are looking for.
Next step: Use our template to send us the Login/Access URL information you need and we’ll tell you if there are any that we don’t currently support
You might also be interested in:
How does the SEC feel about account aggregation? (Blog post by Cynthia Stephens, VP of Marketing, ByAllAccounts)
Download our complimentary whitepaper: Are You Compliance Ready?
How many accounts are enough to justify cost effective aggregation? (Blog post by Cynthia Stephens, VP of Marketing, ByAllAccounts)
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