CapIntel, a leading fintech company supporting wholesalers and investment advisors, recently added new proposal-building functionality to its platform to help Registered Investment Advisors (RIAs) comply with the SEC Marketing Rule when creating presentations. Robust new capabilities automate administrative tasks and address requirements surrounding disclosure and performance reporting; the platform now also features automated recordkeeping for audit purposes.
All advertisements distributed by RIAs are subject to the Marketing Rule; CapIntel’s innovative proposal generation builder assists these advisors in meeting the Rule’s key compliance requirements.
James Rockwood, Founder and CEO of CapIntel, said, “Financial advisors rely on investment presentations to ultimately build the foundations of trust critical to client relations. CapIntel’s customers and partners can rest assured that tailored proposals deliver knowledge and perspectives while staying within the parameters of regulatory requirements. These controls ensure compliance, as financial professionals across a firm create investment presentations that adhere to the rule’s provisions while promoting transparency.”
Per the Rule, advertisements that include gross performance also must show net performance over the same time period, calculated using the same methodology. CapIntel’s proposal generation builder not only facilitates compliance with this aspect of the Rule, it also ensures that presentations follow a consistent format, allowing for the inclusion of only net performance and performance over specified time periods. The platform’s features also help automate back-office administrative tasks, which are embedded into the sales process.
CapIntel’s functionality allows RIAs to “hardwire” required disclosures into presentations, ensuring required information is included when creating proposals. This feature enables RIAs to provide the intended audience with a clear understanding of criteria, assumptions, risks, and limitations associated with hypothetical or extracted performance.
Importantly, the platform creates and maintains a comprehensive record of each presentation generated, automating the development of an audit trail for supervision and regulatory purposes.