Dynasty Financial Partners has partnered with financial technology company Pontera to fully manage 401(k), 403(b) and other held away accounts for clients of the registered investment advisor firms in Dynasty’s network.
Dynasty says it will handle the operational elements of Pontera’s services for firms within its network, including billing and performance reporting integration, allowing them to focus on delivering best-in-class client services.
The RIA network notes that assets in employer-sponsored retirement accounts have more than doubled from $4.9 trillion to ore than $11 trillion at the end of 2021, mainly due to market appreciation and declines in rollovers.
“Consequently, the need for investment advice in these accounts has grown,” according to Dynasty, citing a JPMorgan report that 62% of plan participants wish they could completely hand over retirement planning to an expert.
Typically, “financial advisors have struggled to help clients with these accounts as they are typically held off wealth management advisory platforms,” according to Dynasty.
Pontera’s technology addresses this gap by allowing advisors to trade held away accounts for their clients, Dynasty noted.
Pontera’s data integrations into portfolio accounting systems means that wealth managers can also run performance reporting, portfolio analytics, and trade surveillance, enabling advisors to provide clients with the same level of service on held away accounts as custodied accounts,” Dynasty added.