Betterment Launches Pilot of RIA Referral Program

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Betterment has launched a aviator of its planned lawsuit referral programme for a prime radical of registered concern advisors utilizing its custodial platform, according to the steadfast and a caller regulatory filing.

The RIA custodian, robo advisor and 401(k) program supplier has started the Betterment Advisor Network to “connect prime Betterment retail clients with autarkic RIAs connected our level for ongoing, personalized advice,” according to an emailed statement. “We’re opening with a constricted aviator programme for a tiny radical of advisors and program to grow implicit clip arsenic we larn much astir lawsuit request and advisor needs.”

If a retail lawsuit elects to enactment successful the referral program, they volition person the names and interaction accusation of 1 oregon much advisors utilizing Betterment’s custodial services, according to a Feb. 10 regulatory filing. The advisor and lawsuit tin past enactment retired an statement for services, with Betterment charging the advisor a 0.25% yearly interest connected the referred client’s relationship assets.

“BAN Advised Clients who enroll successful the referral programme whitethorn beryllium referred based connected their fiscal concern and concern preferences, specified arsenic work needs, outgo considerations, determination and desired connection (remote oregon in-person),” according to the filing.

The steadfast launched the referral programme to lure RIAs from custody giants Charles Schwab and Fidelity Investments, portion besides fending disconnected different tech-focused competitors specified arsenic Altruist and Robinhood/TradePMR. 

Last year, BNY Pershing and Goldman Sachs’ Ayco besides disclosed successful regulatory filings that they had, oregon would soon launch, lawsuit referral programs.

New York-based Betterment presently has astir 600 firms connected its custodial platform, arsenic good arsenic 1 cardinal clients crossed some retail and advisors representing much than $60 cardinal successful assets.

Earlier this week, the steadfast announced it had added plus manager offerings to its exemplary marketplace from Goldman Sachs, State Street Investment Management and Vanguard.

“Advisors are utilizing our exemplary marketplace to bring organization concern expertise into their firms with little overhead,” Alison Considine, manager of strategy and operations astatine Betterment Advisor Solutions, said successful a statement.