A provider of technology solutions for registered advisors andindependent brokers is seeing more financial firms inquire aboutdeveloping in-house robo solutions to address the needs oflow-account balance IRA accounts.

In a call with analysts, Judson Bergman, CEO of technology-basedportfolio and practice management provider Envestnet, said thefinalization of the Department of Labor’s fiduciary rule has ledto mounting interest from clients and prospects “looking todigitize a solution which would comply with the new rules” thatwill allow them to continue to service lower IRA account balancesin a “profitable way.”

The rule’s Best Interest Contract Exemption is expected toencourage advisors to IRAs that are compensated on commission-basedsales of investments to move to a fee-based model ofcompensation.

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Nick Thornton

Nick Thornton is a financial writer covering retirement and health care issues for BenefitsPRO and ALM Media. He greatly enjoys learning from the vast minds in the legal, academic, advisory and money management communities when covering the retirement space. He's also written on international marketing trends, financial institution risk management, defense and energy issues, the restaurant industry in New York City, surfing, cigars, rum, travel, and fishing. When not writing, he's pushing into some land or water.