NEWPORT BEACH, Calif. and
CHICAGO, Nov. 12, 2020 /PRNewswire/ -- RiskPro
and Envestnet, Inc. (NYSE: ENV) announce an integration
which will enable investment advisors to build and manage client
portfolios with less regulatory risk. The strategic relationship
between the two companies will allow RiskPro's proposal generation,
portfolio construction, and automated risk surveillance software to
function within existing enterprise workflows on the Envestnet
unified advice platform.
"This is not just an important strategic relationship—this is
something much bigger that will set a new, higher standard for
investment account suitability and regulatory transparency," said
Nick Scalzo, Co-Founder and
Co-CEO of RiskPro. "Working together, RiskPro and Envestnet
have the opportunity to provide more advisors across the country
with tools that help align client portfolios with each client's
individual risk tolerance—increasing the likelihood of meeting
client expectations, while reducing the enterprise's regulatory
risk and liability."
RiskPro's Perpetual Suitability™ software
(https://www.riskproadvisor.com/perpetual-suitability), which will
be offered to Envestnet's enterprise customers when the integration
goes live in early 2021, helps advisors' clients determine their
own Personal Risk Budget™ (PRB) using a
fully documented process that clearly defines risk in terms that
clients can understand—maximum annual dollar gain or loss
potential. Once a client's PRB has been calculated, advisors
affiliated with Envestnet enterprise customers can make investment
recommendations with a 98% statistical probability that maximum
risk tolerances will not be exceeded over any given 12-month
period. This statistical probability applies to institutional model
portfolios as well as to portfolios that investment advisors
construct on their own.
RiskPro's technology allows each enterprise to set its own
surveillance rules for monitoring the risk of a client's portfolio,
as compared to the client's PRB, on a daily basis. Enterprise home
offices and the advisors are alerted if the risk of a client's
portfolio falls outside of the surveillance rules set by the
enterprise, and all steps required by the home office for
realignment are well-documented.
"Our strategic relationship with RiskPro will strengthen the
essential advice that enterprises deliver to clients, while
empowering their advisors to help clients achieve financial
wellness," said Blake Wood,
Senior Vice President and Director of Product Strategy at
Envestnet. "We consistently seek ways to broaden the
data-driven intelligence we can offer advisors, and RiskPro's
technology solutions help advisors at enterprises make better,
risk-managed investment recommendations for investors. This is what
makes RiskPro an ideal strategic partner for Envestnet, and we look
forward to the launch of our integration."
To learn more about Envestnet and RiskPro's integration visit
the Envestnet Advisor Summit site for a new technology session in
the coming weeks: https://www.envestnet.com/advisorsummit.
About RiskPro
RiskPro® is a revolutionary technology
platform that provides risk profiling, portfolio construction, and
automated account surveillance. Serving as the World's First
Virtual Portfolio Strategist, RiskPro evaluates and communicates
risk for investors, advisors, and home offices, utilizing a common
language that is simple to understand. RiskPro was developed by
ProTools, LLC., a RegTech innovator headquartered in Newport Beach, CA. To learn more about how
RiskPro enables financial institutions to achieve Perpetual
Suitability™, visit www.riskproadvisor.com
or contact Jeff Olsen, President, at
(949) 922-3764 or via email at jeff@riskproadvisor.com. Follow us
on LinkedIn.
About Envestnet
Envestnet, Inc. (NYSE: ENV) is transforming the way financial
advice and wellness are delivered. Our mission is to empower
advisors and financial service providers with innovative
technology, solutions, and intelligence to make financial wellness
a reality for everyone. Over 105,000 advisors and more than 5,100
companies including: 17 of the 20 largest U.S. banks, 47 of the 50
largest wealth management and brokerage firms, over 500 of the
largest RIAs, and hundreds of FinTech companies—leverage the
Envestnet platform to grow their businesses and client
relationships.
For more information on Envestnet, please visit
www.envestnet.com, subscribe to our blog, and follow us on Twitter
(@ENVintel) and LinkedIn.
RiskPro and Envestnet are separate and unaffiliated firms, and
are not responsible for each other's services or policies.
This release should not be construed as a recommendation or
endorsement of any particular product, service, or firm.
Media Contacts
Julie Mochan,
AIF®
RiskPro®
949.259.6928
Solutions@RiskProAdvisor.com
Dana Taormina
JConnelly for Envestnet
973.647.4626
envestnetpr@jconnelly.com
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SOURCE Envestnet, Inc.; RiskPro