Matrix Expands Platform for Retirement Plan Providers

Matrix Financial Solutions has expanded the functionality of TrueOpen, its core mutual fund trading platform, to address growing demands from retirement plan providers and advisors.

The augmented system will, among other things, now allow broker-dealers to access a level compensation service as well as view more plan data. Financial advisors will also be able to do more with plan proposal and management.

The level compensation functionality is marketed as an important resource for broker-dealers. The service reportedly provides U.S. Securities and Exchange Commission-registered broker-dealers with the certainty that all investment options available to plan participants will pay the firm and the representative a compensation structure which is described as “levelized.”

In a levelized compensation structure, the fees that a broker-dealer receives from an investment are a level percentage of plan assets, or a fixed dollar amount.

In the Matrix system, this functionality is offered with two price points – 25 and 50 basis points. Matrix will manage all 12b-1 revenue collection and reconciliation efforts with the fund companies, and offer a single payment as well as reporting via the commission settlement service of the Depository Trust & Clearing Corporation. Previously, firms were typically restricted in their choice of investments with level compensation plans.

Other new functions offered include an improved data feed service, which will present plan asset values, investment activity and other important data. It will also create a window for broker-dealers into the activity of a firm’s advisors.

In addition, two new key tools are also targeted to advisors. The first is RetireToolKit Desktop Proposal Generator, which will enable advisors to research, select and monitor funds from more than 20,000 investment options. The second tool, RetireToolKit Desktop Report Generator, allows advisors to prepare and print quarterly and annual plan reviews for meetings with plan sponsors.

“The expansion of our service offering provides all the tools needed to help retirement plan providers comply and win in this evolving environment,” stated Matrix president John Moody. “With new fee disclosure regulations in place and fiduciary standards under review, increased visibility from an open architecture process, at both the firm and advisor level, is being viewed as the solution to help them gain new business and comply with new regulatory changes.”

Matrix Financial is part of Broadridge Financial Solutions, Inc., which offers execution, clearing and custody services as well as technology and operations outsourcing services for both retail and institutional firms.

Tommy Fernandez writes for Money Management Executive.