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How Reg BI Accelerates the Pace of Digital Transformation

"Best Interest" rule helps forge investor trust during pandemic uncertainty.


While the new Standard of Care improves the client experience through the application of fiduciary principles, registered representatives are also finding they can tap into a potent new value proposition for themselves. Implementing the new rule can help define how teams collaborate more effectively.

Reg BI Brings Financial Professionals and Investors Closer

Robust Reg BI adoption offers growth-oriented firms a timely way to distinguish themselves from their competition. The impact of Reg BI is sweeping: It will require the development of new disciplines around strategies and tactics between broker-dealers and their technology partners as well. At its core, though, Reg BI serves some 2,700 retail investment firms as a reminder that the principal of serving the client’s best interest goes hand in hand with delivering a better, more personalized experience.

  • Digital is first among equals. Social distancing from remote working environments would be impossible without digital interactivity. Seamless communications across multiple channels have replaced in-person get-togethers at the office, conference or restaurant. According to the latest Broadridge Pulse Survey of 500 industry leaders, 58% said they expect to increase firm investments in interactive tools while 54% plan to boost funding for AI-based initiatives, followed by investments in blockchain and cloud-based technologies.
  • Going holistic. When adopting holistic principles, as Aristotle put it, “The whole is more than the sum of its parts.” By employing a holistic approach, investment professionals can bring in a wider array of talents to round out the wealth management team that surrounds the client. What may start out as a goals and asset allocation analysis can lead to retirement accumulation and distribution models, business succession planning and much more – all under the banner of implementing a comprehensive program that’s in the client’s best interest.
  • Innovation builds trust. As a recent CFA Institute investor trust study pointed out nearly half of retail investors using an investment professional “trust them more because of their increased use of technology.”

Increasing demands for advice and education is accelerating the adoption of new tools and tactics:

  • Virtual educational conferences, for example, to discuss themes like “the value of fiduciary principles.”
  • “Zoom client dinners” which may even include family members and planning discussions.
  • Employing whiteboards, better graphics, and smart rooms to make meetings-at-a-distance more engaging – whether the subject is financial planning or a portfolio review.

Based on 80 financial industry interviews conducted by Broadridge Consulting Services, firms report that Reg BI helped to accelerate their digital transformation while optimizing the technology they have. Most cited the chance of “building a better environment for client trust” as one of Reg BI’s best features. More information can be gleaned In our recent Reg BI Day 2 Webinar.

Don’t Undertake Reg BI Day 2 Alone

Some firms are emerging from “doing-it-themselves” to finding fiduciary-minded coaches to guide them through the economic recovery ahead. A Reg BI Day 2 program is necessary to publicize your regulatory message in a way that amplifies your value without overstating it. From consultative engagements to education and implementation, we’ve been helping broker-dealers, dually registered firms and registered representatives step up to Reg BI. We’d like to do the same for you.

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