Is your firm prepared to meet the new Department of Labor fiduciary standards?

DOL Compliance

Benjamin Franklin’s axiom that “an ounce of prevention is worth a pound of cure” rings true today for those working in the financial industry. Terrapin is actively working with clients to help them prepare for DOL fiduciary rule compliance. Terrapin offers the following financial technology solutions:

  • data aggregation and management
  • commission processing
  • reporting and analytics
  • compliance management

These services are delivered via our trade surveillance and compliance tools. We are continually upgrading our regulatory technology solutions to be in accordance with the financial industry’s tumultuous regulatory environment. The following is an overview of work that is underway to ensure our clients are prepared to meet the new DOL fiduciary standards.

FINRA Audit Guide

DOL Indicators

Terrapin provides robust data aggregation and management needed to succeed in today’s data-driven world. Our data aggregation infrastructure delivers a global view of a financial institution’s business. Terrapin manages incoming data feeds consisting of clearing and direct business data and outgoing data feeds to external systems such as Salesforce.

Account level DOL indicators are introduced to flag and track accounts impacted by the DOL rules. We use two different types of indicators: Fiduciary and Exemption.

  • Fiduciary Indicator: fiduciary account type, such as ERISA fiduciary account, grandfathered account, preexisting IRA
  • Exemption Indicator: the strategy used with this account, such as BICE Grandfathered, BICE Exemption active

Investment Review

The investment review feature alerts on DOL related accounts that require the advisor to meet with the client on the account anniversary. This feature makes use of the account notes tool as a flexible method to document meeting reason and results. The type of topics discussed (ex: retirement planning, education planning, succession planning), and the details of the discussion (buy, open 529, redeem) are logged in a note field. This documentation can be tied to multiple accounts.

Data Aggregation

Additional data collection work includes mapping between our data hub and a clearing firm so that indicators from the clearing firm are captured, and all associated accounts are flagged. Terrapin is working with the direct business accounts and creating the logic to assign indicators. All these indicators are displayed on the account record so that the advisor or back office staff can see the account, fiduciary indicator, and the exemption indicator. Designated personnel can edit the information on direct business accounts.

indicators from the clearing firm are captured, and all associated accounts are flagged

These indicators enhance existing features and help ensure firms are compliant with the new fiduciary standards. Further enhancements include:

  • DOL / know your customer (KYC) client fields
  • book of business and customer management based on DOL indicators
  • exceptions and alerts reporting based on DOL indicators
  • automated DOL disclosure mailings

Bringing Solutions to the Financial Industry

Data aggregation and management are crucial in this era of ever-changing regulations. Terrapin’s world class data services and Pandia system provide the foundation for accurate reporting and DOL rule compliance. Our industry knowledge and expertise comes from over 20 years of bringing solutions to the financial sector. Benjamin Franklin also said, “An investment in knowledge pays the best interest.”

FINRA Audit Guide
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