NextCapital, the Chicago-based software firm that providesmanaged account platforms for 401(k) plan providers, isn’t waitingfor the Department of Labor to finalize its proposed fiduciary rule.

This week, the firm announced a new partnership with PershingAdvisor Solutions, the arm of BNY Mellon that provides custody,investment, and technology solutions to RIAs and wealthmanagers.

The new deal will give retail advisors access to the automatedadvice NextCapital’s technology provides for 401(k) participants.

In a joint statement issued by NextCapital and Pershing, companyleaders said the deal is reflective of not only of the larger“robo” movement, but also the DOL’s pending fiduciary rule, whichsome independent analysis predicts will create inroads for roboadvisors.

Rob Foregger, co-founder of NextCapital, said the new productwill target “Fortune Fifty” financial services companies with401(k) businesses, IRA rollover businesses, and advisory and assetmanagement businesses.

“Our service is designed to be delivered as fiduciary advice viaour partners,” said Foregger in an email. “Our target would fallunder very large RIAs, or firms that aspire to build very largeRIAs.”

If the DOL finalizes a fiduciary rule resembling its proposedform, commission-based broker dealers will be forced to redesignthemselves as 3(38) fiduciaries, or face the cost of complying withthe proposal’s Best Interest Contract Exemption in order tocontinue to earn commissions off recommended products.

Throughout the years-long debate over the DOL’s efforts toregulate a fiduciary standard of care for all advisors to 401(k)plans and IRA account holders, critics have argued such a rulewould create cost inefficiencies for smaller accounts.

Recent analysis from Morningstar saidas much as $600 billion of low-account IRA balances can be expectedto flow out of commission-based accounts, if the DOL’s rule isfinalized as proposed.

Foregger says automated platforms like NextCapital’s are“absolutely” prepared to meet that need.

But it won’t just be small accounts moving in the direction ofautomated fiduciary advice, said Foregger.

“Many of the large institutions we are working with are seekingto deliver a modernized digital wealth management solution for allmarket segments, including mass affluent and high net-workclients,” explained Foregger.

Arguments that affluent investors won’t cotton to digitalsolutions don’t have much merit with Foregger.

“The entire industry is pushing towards a tighteradvisor-computer experience,” he said.

“Saying your high net worth clients don’t want a digital adviceexperience is like saying your high net worth clients don’t want aniPhone,” added Foregger.