Why exactly Betterment backers Marty Bicknell and Steve Lockshin became customers of rival robo and custodian TD Ameritrade
What makes the counterintuitive step work is how Jemstep helps round up the mass-affluent's mess of paperwork
Stephen Winks
Jemstep is the first example of a robo utilizing prudent process to trump the TAMP format. The evaluation of all a client’s holdings (primative asset/liability study) as an important reference point BEFORE any recommendations are make, make it possible to determine if a recommendation improved over all portfolio returns, reduced risk or enhanced the tax efficiency, liquidity, cost structure, etc. of all the clients holdings as a whole. This is an advisory services function and a fiduciary duty, more so than simply doing a client profile and selling an expensive packaged advice product.
There is significant value added through prudent process (asset/liability study, Investment Policy, portfolio construction, performance monitor) authenticated back to statute (assuring fiduciary standing) which is not now actionable in a TAMP format.
With the new DOL Fiduciary Proposal, prudent process and its authentication back to statute, case law and regulatory opinion letters, will become the rule rather than the exception. Jemstep is a step ahead. All robos and TAMPs will have to adapt.
SCW
Stephen Winks
Related Moves
UBS bets its 'wealth' future on ex-Schwabbie Naureen Hassan, a corporate digital A-lister, who analysts give a fighting chance to transcend PaineWebber's ossified culture
Still a $2-billion cash-flow cow, the Swiss bank's 6,000-broker, US-based wirehouse is milking aging broker relationships with aging investors but needs a new kind of human presence, empathy, mindset and smarts to draw in Gen Z.
July 16, 2022 at 1:35 AM
Betterment whistleblowers net $2.5 million • Wealthfront's big pivot leads to profits • Altruist launches tax service • CMOs in at Ascensus, Wealthspire & Joe Duran's Rise • Savvy bags four advisors as Mariner sues it for poaching • Jim Dickson launches RIA stake buyer
Betterment is also bending to RIA needs • Wealthfront is in the black, thanks to cash • Altruist reveals where it makes its money • Rise, Wealthspire and Ascensus each add two executives • Compound hits $2 billion of AUM • CAIS slashes alts prices • BlackRock ups private debt sales to RIAs, through GeoWealth.
June 29, 2024 at 3:00 AM
Oleg Tishkevich builds instant McKinsey-killer in RIA consulting by offering gigs and equity to six solo stars, but good luck managing egos and economics, says someone who's been there
The restless Invent.us founder names (thus far) Tim Welsh, Suzanne Siracuse, Gavin Spitzner, Mark Hollingsworth and Brian Bleasdell as owners in exchange for being on call to tackle big gigs as a superteam
September 10, 2019 at 10:52 PM
Nexus Strategy
Consulting Firm
Top Executive: Timothy D. Welsh
Mariner
RIA Welcoming Breakaways, RIA Seeking to Hire Advisors, Advisory Firm
Top Executive: Marty Bicknell
