The McHenry Consulting Group today announced the release of High Net Worth Data Aggregation: Realizing the Profit Potential. The Paper addresses the Securities and Exchange Commission’s (SEC) legal and privacy concerns that have been raised around the area of fee collection and data aggregation.
“Financial advisors have historically sought to aggregate their High Net Worth clients’ financial information in order to increase client penetration and assets under management,” says Eric Wagner, Author and Research Manager. “However regulators have raised compliance flags around the areas of web-based data aggregation in investment advising. Add to this the fact that early aggregation solutions were too simplistic and unsuccessful at generating new revenues and you’ll understand why such solutions haven’t taken hold until now.”
McHenry Consulting Group has been engaged in research into the SEC compliance and privacy concerns that affect aggregation platforms available to Registered Representative/Registered Investment Advisors (RR/RIAs). The research shows that properly designed open-architecture data aggregation models, by their very structure, minimize compliance risks. In addition, such open-architecture platforms are now robust enough to deliver the kind of complex, dynamic data synthesis and analysis advisors need to make such technology investments profitable.
“This is great news for the industry,” said Ward Harris, Managing Director of McHenry Consulting Group. “There is a model data aggregation strategy that permits RR/RIAs to perform fee-based services on assets custodied by their Broker-Dealer (BD) as well as non-custodial assets. On top of this, it enhances service levels.”