Investment Wizard

The RightBRIDGE Investment Wizard uses the RightBRIDGE engine to determine the relevance of specific managed investment products for a client’s goals and objectives.

The RightBRIDGE Investment Wizard uses the RightBRIDGE engine to determine the relevance of specific managed investment products for a client’s goals and objectives. The RightBRIDGE Investment Wizard is configured to include best interest product validation functionality for Reg BI and PTE 2020-02. The Investment Wizard accomplishes this through either its Validation or Selection track.

Product Validation

Under Product Validation the user picks the investments and the system runs the user’s selections against the RightBRIDGE rules engine to determine if the proposed sale is in the client’s best interest. The system will validate if the selected product(s) will meet the client’s needs as well as complies with regulatory requirements.

Product Selection

With product selection the solution walks the user through a process that helps identify which investment program best meets the needs of the client. When necessary RightBRIDGE then guides the user through the individual investment product selection process. Both the selected program and the selected investments will then be validated for best interest fit.

The Investment Wizard Validation Process

Step 1: Select Program

In the validation track the user clicks the “Validate proposed portfolio” button and then uses a drop-down menu to select the investment program and allocation model.

Step 2: Questionnaire

The Investment Wizard questionnaire will prompt the user to answer questions about the client and their preferences and objectives for the investment account.

Step 3: On Screen Validation Output

The selected product and its validation result is displayed to the user. ReasonText™ explaining why the program scored the way that it did is provided. Depending upon the best interest scoring result, validation output can be shown as green, yellow or red

Compliance Validation Check

The Investment Wizard performs validation checks at the mutual fund level as well as the overall portfolio level. The system creates a table showing the mutual fund comparison. The table identifies the selected mutual fund and includes similar products that represent Reasonably Available Alternatives.

The portfolio validation check is performed before the selected products can be finalized. The system will notify the user if:

  • The proposed asset allocation is not aligned with the target allocation model
  • The selected investment program is not optimal for the use case
  • The proposed portfolio’s standard deviation is not in-line with the client’s stated risk tolerance
  • Funds are missing or not selected for particular asset classes
  • The proposed portfolio contains highly volatile funds
  • Share classes are not in-line with expected types

PDF Reports

Note the Best Interest Compliance Checklist at the top of the report. Each program/platform type is analyzed in the analysis.