Smart Kx and Wealthramp Team Up To Help Financial Advisors Automate Fee Calculations for Improved Accuracy and SEC Compliance

Wealthramp June 23, 2022
SmartKxWRHero

Integration of Smart Kx’s Automation Platform and the Wealthramp Fiduciary Network Eliminates Manual Billing for 250+ Advisors, Enhances Revenue Control, and Strengthens Client Relationships

 

San Francisco, Calif. – June 23, 2022Wealthramp, the consumer-first financial advisor matching platform, today announced a new partnership with Smart Kx, an intelligent billing and contract system developed for investment advisors. Fee-only financial advisors on the Wealthramp network that leverage the collaboration will improve fee calculations in their portfolio management systems and eliminate manual processing and compliance risks, enabling advisors to spend more time with clients and manage a more efficient practice.

The SEC’s Division of Examination regularly reviews whether Registered Investment Advisors have adopted and are following policies and procedures that result in charging fair and accurate fees and communicating sufficiently with clients to understand costs associated with their services. Last November the SEC conducted 130 examinations and identified deficiencies in nearly all of the reviews. Industry experts estimate that fees and client agreements are inconsistent approximately 50%-60% of the time.

“Fees have always been an issue in the industry, with the onus largely on the individual investor to understand and audit what their advisor is charging. In our current market with inflation adding pressure, clients will be more diligent in reviewing how much they are paying and the calculation accuracy. Now more than ever, RIAs want to spend time building deeper relationships with clients and prospects, not worrying about or defending their incorrect fee calculations,” said Smart Kx CEO Lacey Shrum, who is also a former chief compliance officer.

Smart Kx automates fee calculations from the very start of an advisor-client relationship. The platform ensures individual client fees are documented and aligned with fee disclosures at all times, which prevents firms from overbilling or underbilling clients. Smart Kx was built to calculate the fee directly off of the client fee agreement. This reduces audit requirements, gives the advisor control and insight over revenue, and makes adjusting the fee schedule easy.

In addition to offering the automation platform to advisors on the network, Wealthramp will also begin using Smart Kx for its own billing. Wealthramp invoices advisors who convert referrals from the platform into client relationships. The two companies will deliver educational content and resources to help advisors identify any discrepancies in their current processes and use Smart Kx technology effectively to improve their practices and prepare for future SEC audits.

“A lot of advisors say they are client-first and Wealthramp and the advisors on its network are actually living up to this mission; the fact that the company is women-led makes this collaboration even more meaningful. We look forward to working together to equip advisors with the tools and to educate the market about fee accuracy and transparency,” said Shrum.

Pam Krueger, founder and CEO of Wealthramp added, “I created Wealthramp because I was disappointed with how the industry incentivizes selling and promotes ‘advisors’ who don’t act in their clients’ best interest. People deserve much better, which is why we vet every advisor on our network to ensure they are true fiduciaries. The problem is even fee-conscious advisors can struggle with manual processes and billing errors that limit their ability to give clients peace of mind. We’ve been tracking the SEC’s reports and hearing directly from advisors who are looking for solutions to help eliminate this issue, and the response for Smart Kx has been overwhelmingly positive.”

This is the second vetted advisor technology offering on the Wealthramp platform. Earlier in June, the company announced a new partnership with Carefull. Each of these new solutions provides advisors with resources to grow their practices effectively as the industry moves to a more digital era of wealth management.

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About Wealthramp

Wealthramp is an SEC-registered advisor matching platform that connects consumers with rigorously vetted and qualified fee-only financial advisors. It is the only service that protects consumers by never selling their information or sharing it without their permission, placing consumers in full control of the process. Built on the foundation of consumer education and data privacy protection, Wealthramp screens out conflicts of interest and engages only with established fiduciary advisors who work solely in the best interests of clients. The company includes independent CFPs, CFAs and CPAs across the U.S. specializing in holistic financial planning, income strategies, stock-based compensation, special needs planning, and more.

 

About Smart Kx

Smart Kx is the only fee solution that combines client fee calculations with disclosures and legal agreements. Fees are digital, transparent and exactly as agreed to by the client. Our mission is to help RIAs spend less time on complicated excel spreadsheets worrying about the inevitable call from regulators and instead focus their talents and attention on their clients, business and team. Smart Kx is currently available to state and federally registered Registered Investment Advisors.

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