Registered investment adviser (“RIA”) firms utilizing our MyRIACompliance® RIA compliance software platform now benefit from our new integration with Riskalyze, a leading risk tolerance software provider. Riskalyze quantifies the risk that clients have in their portfolio, allowing for an objective assessment of their risk tolerance level proving alignment with the advisor’s portfolio and the client’s level of risk tolerance.
Riskalyze’s integration with MyRIACompliance® establishes a simple supervisory workflow in which the Chief Compliance Officer (“CCO”) of an RIA firm is able to seamlessly track, manage, and document the client suitability and portfolio review process enabled by the two platforms.
By integrating the two systems, CCOs are able to:
1. Simplify the client suitability review process
2. Clearly log and document the client suitability review to ensure proper record keeping
3. Streamline the supervisory process related to client suitability
For the Firm’s CCO
The Chief Compliance Officer, or others at the firm serving in a supervisory role, will have access to a summary dashboard on MyRIACompliance® which will allow them to track their overall client suitability review progress. The supervisor’s view will also identify how many of the firm’s client portfolios are presently within the target risk, above the target risk, below the target risk, or without a Risk Number®.
The CCO or other compliance supervisors are then able to further drill down into each risk category to see a summary of individual advisors’ client portfolios and the number of clients that fall within each risk category and when the suitability information (i.e. the Risk Number®) was last updated. The supervisory user can then send reminders to individual advisors at the firm directly from MyRIACompliance® to set up their integration or prompt them to complete their initial client suitability review.
As individual advisors submit their client suitability reviews, submissions will be logged in the Review Manager, which allows compliance supervisors to easily track and manage submission progress including approvals, denials, and pending submissions. The tool also shows outstanding tasks and incomplete integrations.
For Individual Advisor Representatives
Individual advisors will have a new Riskalyze widget added to their MyRIACompliance® dashboard showing the number of their individual clients presently in each risk category. The individual investment adviser representative can access Riskalyze directly through MyRIACompliance®, conduct their risk and suitability analysis on each of their individual clients, and submit the review for approval directly through MyRIACompliance®. This allows for easy documentation of the review and each advisor’s plan of action to reallocate clients’ portfolios towards their proper risk targets. All submissions are logged in the firm’s compliance log.
The MyRIACompliance® and Riskalyze Integration is available to all subscribers of Riskalyze and MyRIACompliance®. If you are a current subscriber of both platforms, contact your Client Advocate for details on how to set up the integration.