Broadridge Financial Solutions will acquire Fi360, a fiduciary education and software provider for financial advisors, Broadridge announced today. The news is the latest development in a busy year for Broadridge; in April, the firm acquired $35 billion in retirement plan assets from TD Ameritrade Institutional, and last month it acquired Financial Database Services, a San Diego-based firm offering compliance tools and solutions for broker/dealers.
According to Michael Liberatore, who runs Broadridge’s Mutual Fund and Retirement Solutions business, purchasing Fi360 was illustrative of accelerating trends in the industry. Integrating Fi360’s services would help Broadridge offer advisors easier ways to toe the fiduciary line, he asserted.
“The shift to fee-based advice and imminent regulatory changes, including the SEC’s Regulation Best Interest, are increasing the scrutiny on firms to ensure that they are demonstrating prudent advisory practices,” he said. “Our goal is to help firms stay ahead of this evolving regulatory landscape.”
Broadridge also cited the imminent implementation of the SEC’s Reg BI as a motivation behind the purchase of Financial Database Services, saying that moving that firm’s tech in-house would strengthen Broadridge’s position to help clients with “adoption and compliance.” Reg BI, which was approved last year, is scheduled go into effect on June 30, 2020.
Fi360, which was founded in 1999, offers tools and tech granting advisors the chance to more easily act as fiduciaries, and according to Fi360 CEO Bill Mueller, joining Broadridge will drastically expand the scope of its technology’s potential impact.
“Leveraging Broadridge’s scalable technology and position within the financial services network will enable us to offer the best possible solutions to help clients provide a fiduciary standard of care,” he said.
Raymond James will act as Fi360’s financial advisor during the transaction, which is expected to close in November, though details of the transaction were not disclosed.