Financial Advisor IQ

Dynamic Offers End to ‘Band-Aid Approach’ to Held-Away Accounts

September 01, 2021

By Sam Del Row

Jorge Padilla, CFP®

Dynamic Advisor Solutions has partnered with technology platform provider FeeX to enable advisors to actively manage and trade on clients’ held-away accounts such as 401(k)s.

The partnership will integrate FeeX’s held-away account trading and management platform with Dynamic’s Wealth360 platform.

FeeX provides a held-away account trading and management platform, a fee analysis platform, rollover compliance and asset retention for retirement plan providers, according to its website.

The Wealth360 platform includes features such as account aggregation, a digital onboarding application and financial planning and portfolio management, according to Dynamic’s website.

Dynamic founder and chief executive officer Jim Cannon said Dynamic has offered aggregation of held-away accounts “for a number of years,” but addressed it with “a band-aid approach” because “there hasn’t been good technology surrounding doing it in a streamlined fashion.”

That has changed because of FeeX, Cannon said.

Previously, advisors “had to reach out to clients, gather their account statements manually and then manually enter that information into the system to come up with a complete picture of that client’s holdings,” Cannon said.

The FeeX integration provides “a seamless experience in terms of the data feed” and a complete view to see not only where that client is currently positioned but the other investment options that are available to them,” according to Cannon.

Cannon also said that in the past, even if an advisor had a data feed that included a client’s held-away accounts, the advisor “couldn’t go into that client’s retirement account and trade it.”

“With this application, we have complete access to go in and operate, with discretion if we have an advisory agreement that has discretion in it, for that client, just like we do their account that’s at [Charles] Schwab or TD [Ameritrade],” Cannon said.

Around 28 advisory practices are using the Dynamic-FeeX integration, according to Cannon.

One of these is The Lubitz Financial Group, a Coral Gables, Florida-based registered investment advisor firm. Lubitz has worked with Dynamic for three years, and began using the FeeX integration earlier this year, according to senior client advisor Jorge Padilla.

“We’ve been looking at clients’ financial picture as a whole for many years and looking at managing clients’ portfolios in aggregate. Many times, that involves taking a look at accounts that are not conveniently located in a custodian like Schwab, Fidelity, TD or Pershing,” Padilla said.

“Many advisors may not consider account aggregation because it takes an extra step, but the benefits outweigh the costs. It provides a better picture of the client’s or the family’s wealth and there’s also an argument to be made about ensuring that the client is not overly exposed to any sector or asset class because you have full visibility of the financial picture,” Padilla added.

In addition to the Wealth360 platform, Dynamic also provides front-, middle- and back-office support; compliance capabilities such as maintenance of client contracts and Form ADV updates; and portfolio services such as investment due diligence and research assistance, according to its website.

Photo: Possessed Photography, Unsplash

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