What You Need to Know
- The new service, now live, was first previewed at Envestnet’s 2023 Elevate Conference in Denver.
- A growing number of retirement plan advisor aggregators are building capable wealth management businesses themselves.
- Proprietary SCORE methodology applies quantitative and qualitative factors when evaluating investment options.A growing number of retirement plan advisor aggregators are building very capable wealth management businesses themselves.
Financial advisors working with Envestnet can now offer their business owner clients access to a streamlined 401(k) plan solution with fiduciary oversight and investment support.
The new Envestnet Retire Complete platform was developed in collaboration with Empower Retirement, and it was first previewed in May by Envestnet CEO Bill Crager at the firm’s 2023 Elevate Conference in Denver.
At the time, Crager said the partnership would see Empower integrate its administration technologies and asset management capabilities within the Envestnet ecosystem. The ensuing partnership, Crager said, would expand both firms’ distribution opportunities while also providing “a powerful solution for wealth managers who have traditionally shied away from serving plan sponsors and participants.”
Why it matters: Some seven months later, the platform is now officially live, and it features an approach known in the benefits arena as “3(38) fiduciary investment management.”
In a statement announcing the platform launch, Sean Murray, head of retirement for Envestnet, says the 3(38) fiduciary service and investment selection methodology, along with Empower’s retirement services market leadership and scale, have “created an opportunity for advisors to help businesses deliver value to their employees — while minimizing fiduciary concerns and service challenges associated with running a retirement plan.”
“Together, we can enable more organizations to offer a competitive benefits package for attracting and retaining top talent,” Murray suggests.
What to know: According to the announcement, Envestnet’s fiduciary service is complemented by its proprietary SCORE methodology designed to evaluate and monitor investment options in qualified retirement plans.
