SEC Rule 206 (4)-2

This is a question that we get asked frequently:

“Is there way for wealth managers and financial advisors to benefit from account aggregation without being subject to the annual surprise examination requirement of the custody rule,  SEC Rule 206(4)-2”?

The answer is “YES.” Rule 206(4)-2 is widely known as the “custody rule” and we can provide financial advisors relief from this rule. We can provide wealth managers aggregated data account information without the need for direct online access to clients’ accounts, access which often constitutes custody under the revised SEC rule. Advisors get all the benefits of aggregated account access, including the ability to advise and bill on held-away assets and provide more holistic portfolio analysis, without assuming the burden of custody.

Wealth managers who can see a client’s complete financial picture are able to offer better financial advice and, in turn, benefit financially from doing so, but in the wake of the SEC’s custody rule amendments many financial advisors question whether they want to have possession of client login credentials. Choose from a range of account aggregation solutions to eliminate the risk so you and your clients get all the benefits of data aggregation without the time-consuming and costly headaches that accompany formal custody. Our easy, secure client login makes it convenient for your clients to allow account aggregation without granting you, the advisor, direct access.