LPL Financial is adding HiddenLevers to its arsenal of technology to help advisors comply with the Department of Labor’s fiduciary standard.
The custodian announced that HiddenLevers would be included in the LPL Affinity Program, bringing HiddenLevers’ stress testing and fee attribution analysis to the nearly 15,000 financial advisors who custody with LPL.
HiddenLevers co-founder Raj Udeshi said advisors for years have been using the technology to prevent panic selling during volatility and showing clients the effects of macroeconomic factors like immigration, deflation and Baby Boomer outflows. In light of the DOL’s rule, it is now helping advisors add transparency around fee attribution for holdings and show how they can act in a clients’ best interest in different economic scenarios. Compliance personnel are also using HiddenLevers’ batch stress testing to monitor loss tolerance drift thresholds and alert advisors when they need to act.
“As the regulatory bodies dig in their heels, it's becoming obvious that the US is headed toward a universal fiduciary duty for financial advisors,” Udeshi said in a statement. “Don't expect some BICE waiver to save your soul or your hide.”
HiddenLevers is already integrated with LPL BranchNet and WealthVision (LPL’s partnership with eMoney) to facilitate data importing and syncing.
Praveen Ghanta, HiddenLevers co-founder and head of tech, said the company would continue create new technology to keep pace with future regulations.
“Our development culture, with monthly product releases and a focused team, is more like Instagram or WhatsApp than a big bank's army of uninspired coders,” Ghanta said. "My advice for larger LPL branches and OSJs -- any tech company that tells you they have a finished, fool-proof DOL solution -- walk away slowly."