RiXtrema AnnuityOptimizer Prepares Advisors for June 9 DOL Fiduciary Rule Rollout
Enables Compliance with the Impartial Conduct Standard When Advising on Annuities
NEW YORK, May 18, 2017 /PRNewswire/ -- RiXtrema, the leading provider of risk management tools and analysis to the financial advisory and broker/dealer community to help ensure that investors get the analysis and advice they need, announced the introduction of the AnnuityOptimizer. This is the first quantitative software platform that will help advisors demonstrate the portfolio impact of moving into or out of a variable, fixed or fixed indexed annuity. The software platform also includes RiXtrema's own extensive database of variable annuities, with more than 2,300 contracts and more than 15,000 contract modifications issued in different years, including more than 100,000 subaccounts with clear mapping to each annuity contract.
"The AnnuityOptimizer software platform and the accompanying database is a game changer for advisors," said RiXtrema President Daniel Satchkov, CFA. "The June 9 deadline is quickly approaching, and many firms that currently advise on variable, fixed or fixed indexed annuities are not at all prepared to demonstrate the prudent process required under the Best Interest Standard of Care. The AnnuityOptimizer, with our state-of-the-art quantitative analysis and reporting tools, is a ready solution."
The DOL Fiduciary Rule requires that advisors be able to show that they are acting in the client's best interest. Annuities are complex instruments and it can be difficult to compare them to each other, and even harder to compare them with taxable portfolios. For advisors to comply with the Impartial Conduct Standard, advice regarding getting in or out of an annuity must be systematically evaluated for client's best interest.
The AnnuityOptimizer is designed to enable advisors to model and illustrate the impact on cash flow when selecting a variable, fixed or fixed indexed annuity with or without riders. It can also compare cash flows between those instruments, as well as to a taxable portfolio. AnnuityOptimizer adds to the suite that already includes IRAFiduciaryOptimizer and 401kFiduciaryOptimizer, tools that help advisors implement fiduciary best practices and demonstrate prudent process.
"Advisors can now analyze annuities for their prospects and clients and show them realistic cash flows they can expect from any fixed or fixed indexed annuity, or a VA with any subaccount, given a set of reasonable conservative assumptions," said Satchkov.
Watch this video to learn more about the AnnuityOptimizer.
ABOUT RIXTREMA
Founded in 2010, RiXtrema is a portfolio crash-testing company that helps advisors discuss risk with clients. Long used by fund managers, pensions plans and funds of funds, RiXtrema has introduced its risk management tools to the financial advisory and broker/dealer community to help ensure that clients get the analysis and advice they need. The RiXtrema research team received the 2015 Peter L. Bernstein award, one of the most prestigious awards in finance, for its article Risk Estimation and Hedging: A Reverse Stress Testing Approach, published in The Journal of Derivatives in April 2015. RiXtrema solutions include Portfolio Crash Testing; BioniX, the first robo platform for advisors that includes sophisticated risk modeling; IRAFiduciaryOptimizer, the first quantitative DOL Fiduciary Rule Rollover solution, and the related 401(k) Fiduciary Optimizer geared for plan advisors. For more information, visit www.rixtrema.com.
Contact:
Leslie Swid
Impact Communications
(913) 649-5009
[email protected]
SOURCE RiXtrema
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