CapIntel’s Proposal Builder Ensures Compliance with Latest U.S. Regulatory Requirements
TORONTO, July 12, 2023 /CNW/ — CapIntel, a leading financial technology company that improves fund analysis, proposal generation, and day-to-day workflow efficiency for financial services wholesalers and investment advisors, today announced the launch of new proposal building features that allow financial advisors to create investment presentations that comply with key elements of Rule 206(4)-1 under the Investment Advisers Act of 1940, also known as the SEC Marketing Rule.
The Marketing Rule sets forth principles-based general prohibitions that apply to all advertisements disseminated by a Registered Investment Advisor (RIA). CapIntel’s innovative proposal generation builder includes a range of controls to assist RIAs in meeting the key requirements outlined in the Marketing Rule.
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.”
The proposal generation builder offers a comprehensive set of features to facilitate compliance with the Marketing Rule, which mandates that advertisements showing gross performance also must include net performance, calculated over the same time period and using the same return type and methodology. CapIntel’s controls ensure that presentations follow a consistent format, allowing for the inclusion of only net performance and performance over specified time periods. The controls help automate back-office administrative tasks, which are embedded into the sales process, so the advisor can spend more time on their client-centric mission.
CapIntel’s functionality also allows RIAs to “hardwire” necessary disclosures into presentations, ensuring that financial professionals include required information 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. The platform creates and maintains a comprehensive record of each presentation generated by an RIA’s financial professionals, automating the development of an audit trail that is in compliance with Rule 204-2 under the Investment Advisers Act of 1940.
About CapIntel
CapIntel is a Canadian-founded B2B fintech company, serving financial institutions across North America. Its intuitive, web-based applications are improving the overall experience for wealth professionals and investors alike. The company’s mission is to elevate personal finance and a significant part of this means growing wealth through investments while creating meaningful conversations between advisors and their clients. Its platform helps financial professionals deliver transparent, data-driven, and personalized information to their clients so they can get a better understanding of their investments and feel at ease knowing their future is secured. With over 12,000 advisors and 800 wholesalers across North America on their platform, CapIntel is transforming the advisor-client experience. See www.capintel.com for more information.
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