Toronto-based online investment service Wealthsimple is extending its services to financial advisors by launching an automated platform designed especially for them, the company announced today.
For a nominal fee, Wealthsimple for Advisors allows investment professionals to automatically provide their smaller accounts with the company’s signature online investment management services, therefore making it easier for them to focus on key portfolios and respond to customer concerns.
In a statement, Wealthsimple CEO and founder Michael Katchen said the company’s aim was to provide the financial services industry with both smart technology and the means to use it effectively.
From an advisor’s perspective, Wealthsimple for Advisors’ administration interface includes a personalized dashboard for each client that displays their portfolio’s performance, assets under management (AuM), and financial goal, in addition to their email address and phone number – making it easy to contact a client should a new opportunity arise.
For clients, the dashboard will look much the same as it does for other Wealthsimple users, providing a breakdown of their portfolio’s value, investments, and access to the company’s internal support group, Wealth Concierge, plus two features exclusive to Wealthsimple for Advisors: their advisor’s contact information, and pricing, which will indicate the fees they are paying Wealthsimple, and the fees they are paying their advisor.
The program allows advisors to set annual AuM fees of between 0.35 and 1.5 per cent, with Wealthsimple itself automatically charging an additional 0.35 per cent.
In its FAQ, the company notes that Wealthsimple for Advisors is not meant to be used, SoapBox-style, as a customized front-end platform for your own company or product: Consequently, both advisors and their clients must register as Wealthsimple users.
Firms that register for the service are asked for client details, pricing information, and client goals, though once the platform is set up advisors can add new clients simply by entering their email addresses.
Clients, meanwhile, receive an email indicating that their advisor has invited them to join Wealthsimple, with the company conducting its usual risk assessments to determine suitability.