Castle Hill is allowing advisors to sign up for its due diligence tool, DiligenceExpress, for free, following its launch on Tuesday. The tool monitors the U.S. Securities and Exchange Commission’s Form ADV database, notifying registered users when changes are made. While the data provided is also available through the SEC, Castle Hill takes due diligence a step further, by sending emails or offering a comparison when changes are made to Form ADVs.
“The whole idea here is about efficiency for our clients,” said Daryl Purdy, vice president at the firm. “This system really facilitates that. Clients can lean on the technology to see what’s been changed” in Form ADVs. Advisors might be interested in the service for competitive intelligence or to understand how investment managers’ data is presented, he said. Users can filter the database by location of offices, assets under management and other criteria.
There’s also the surprise factor: “No financial advisor wants the end client to come to them and say, ‘Hey did you know?’” he added. Advisors can scan for reputational red flags or new or existing regulatory action within the database.
The service is being offered free-of-charge to provide an entry point into other Castle Hill products, said Purdy. “Fintech and regtech solutions are now a must,” added Chris Addy, the firm’s president and CEO, in a statement. “Technology allows us to turn diligence into data, and data into diligence.” The firm initially piloted the service at the end of 2018, making it available to existing clients this year.