Envestnet launches retirement platform, PIABA and FINRA agree on complex products, and Northwestern Mutual invests in Black-led CDFIs

Wealth Briefs: Envestnet launches retirement platform, PIABA and FINRA agree on complex products, and Northwestern Mutual invests in Black-led CDFIs

ByEditorial Staff

May 12, 2022 6:23 PM

The Public Investors Advocate Bar Association is throwing its support behind FINRA’s complex product proposal. Envestnet is launching a new retirement platform with Kestra Financial. FINRA posted its budget summary.

Scroll down our cardshow to see these stories, and more, in our weekly roundup of wealth management news.

Envestnet partners launches a new retirement platform

Envestnet Retirement Solutions has partnered with Kestra Financial, an Austin, Texas-based wealth management platform to launch a Retirement Plan Enterprise. The platform uses technology tools to help with investment analytics, fund research and monitoring reports. “Whether financial professionals are looking for resources to service their existing retirement plan clients or to help them acquire new retirement plan business, it’s the ideal solution for financial professionals focused on this line of business.” Taylor Hammons, head of retirement plans at Kestra Financial, said in a statement.

Advisor Group picks CAIS for alternative investment access and research

Independent wealth manager Advisor Group chose alternative investment platform CAIS to be its enterprise vendor for bulked-up alternative investment access, education and transactions. CAIS has secured $325 million in growth capital from Apollo, Motive Partners, Franklin Templeton, Reverence Capital Partners and Stone Point Ventures, which valued the company at more than $1.1 billion. A software integration with CAIS enables Advisor Group’s advisors to gain access to the firm’s services. “We were looking for a trusted long-term partner and what attracted us to CAIS was their flexibility to customize the platform’s product menu, simplify the transaction process and integrate our wealth management ecosystem to help solve the needs of all types of clients, from high net worth to mass affluent,” Shannon Larson, Advisor Group’s senior vice president of platform management and product development, said in a statement.

Northwestern Mutual invests $5M in Black-led CDFIs

Insurer and wealth manager Northwestern Mutual invested $5 million in two Black-led, Milwaukee-based Community Development Financial Institutions — Legacy Redevelopment Corporation and the Northwest Side Community Development Corporation — to help boost access to capital for Black businesses. Legacy Redevelopment focuses on housing and commercial real estate for small businesses and nonprofits under CEO Terese Caro, while Northwest Side collaborates with business to create economic growth and stronger neighborhoods under executive director Willie Smith. "Northwestern Mutual has a legacy of investing in the communities we proudly serve, particularly in our hometown of Milwaukee," Ray Manista, the company's chief legal and compliance officer, said in a statement. "Black and African American business owners, for a variety of reasons, have had limited access to traditional financial markets, and this latest investment will deepen our mission to make a bold and long-term impact that drives access and equity."

PIABA stands with FINRA regarding the complex product proposal

Public Investors Advocate Bar Association submitted comments to FINRA regarding complex products and options, including leveraged and inverse ETFs and options trading. “The bar association believes strongly that member firms’ obligations for the supervision of sales of complex products and options should be strengthened. It is clear that complex products like these discussed above can wreak havoc on investors’ portfolios in a relatively short period of time.This should be met with extra vigilance by FINRA.”

FINRA posts 2022 budget summary

Sign outside offic eof Financial Industry Regulatory Authority

FINRA’s 2022 operating revenues are projected to be $1.095 billion, a 5% from 2021. “Our projection for 2022 reflects expected declines in corporate filings and in trading volume. These declines are expected to offset the impact of previously announced fee increases approved by the SEC,” FINRA said in its chairperson and CEO letter.