Dynasty Financial Partners Forms Partnership with Pontera to Improve Client Retirement Outcomes through Held Away Account Management

·4 min read

Independent advisors using Dynasty’s outsourced back and middle-office services will be able to see, trade, bill, and report on 401(k), 403(b), and other held away accounts through Pontera

NEW YORK & ST. PETERSBURG, Fla., August 17, 2022--(BUSINESS WIRE)--Dynasty Financial Partners, the leading provider of back and middle-office outsourced solutions for RIAs, and financial technology company Pontera announced a partnership to allow RIAs in Dynasty’s network to fully manage 401(k), 403(b), and other held away accounts for their clients in a secure and compliant manner leveraging Pontera’s SOC 2 certified platform.

Since 2010, the time of Dynasty’s founding, assets in employer-sponsored retirement accounts have more than doubled from $4.9 trillion to over $11 trillion as of year-end 2021. In addition to market appreciation, this growth is attributable to declines in rollovers due to retiree-friendly plan policies and better in-plan investment options. A recent Cerulli report found that of the $3.3 trillion eligible for a distribution last year, 73% remained in-plan. Bipartisan support of accommodative legislation in the SECURE Act 2.0 and the re-enactment of the DOL Fiduciary rule suggest that the trend of employer-sponsored plan growth will only continue.

Consequently, the need for investment advice in these accounts has grown; a recent J.P. Morgan survey found that 62% of plan participants wish they could completely hand over retirement planning to an expert. Historically, however, financial advisors have struggled to help clients with these accounts as they are typically held off wealth management advisory platforms (or "held away"). Pontera’s technology addresses this gap by allowing advisors to trade held away accounts for their clients. Pontera’s data integrations into portfolio accounting systems means that wealth managers can also run performance reporting, portfolio analytics, and trade surveillance, enabling advisors to provide clients with the same level of service on held away accounts as custodied accounts. Advisors can increase their revenue while providing a comprehensive financial picture through the addition of retirement plan accounts.

"At Pontera, our mission is to be a bridge to a better retirement for investors everywhere by allowing them to get the management they want and need in their held away accounts," said David Goldman, Pontera’s Chief Business Officer. The benefit of professional investment management to clients can be monumental; research shows professionally managed accounts can generate over 3% in additional value per year, net of fees, and potentially even more during times of volatility like the first half of 2022. "We are humbled and excited to partner with Dynasty, who we view as a pioneer and leader in the independent wealth management space, in pursuit of our goal," Goldman added.

"At Dynasty, we help leading advisor teams transition to independence so they can provide customized, holistic advice to their clients in ways that may not be possible in other channels," said Shirl Penney, Dynasty’s CEO. "Managing employer sponsored retirement accounts is critical to delivering a comprehensive service to clients. We are thrilled to have found a provider that can deliver the capability in a scalable, secure, and compliant manner. We look forward to launching with Pontera to bring held away account management to all of our teams and their clients."

Dynasty will handle the operational elements of Pontera’s services for firms within its network, including billing and performance reporting integration, allowing them to focus on delivering best-in-class client services. Dynasty joins a number of other fintech providers in recently announcing partnerships with Pontera.

About Dynasty Financial Partners

Dynasty Financial Partners is known for assisting advisors of integrity to better service their clients, run their businesses more profitably, grow faster, and enhance the enterprise value of their firms. Dynasty does this by providing wealth management and technology platforms for select independent financial advisory firms. Dynasty creates access to valuable resources and industry-leading capabilities through an open architecture platform, enabling advisors to address their clients' needs and to protect and grow their wealth. Dynasty supports independent advisors and their teams in being independent, but not alone, by creating exclusive community events and experiences. Dynasty also offers access to flexible capital solutions to help advisors expand, scale, and grow their business. Dynasty's core principle is "objectivity without compromise," and the firm is committed to developing solutions to allow investment advisors to act as true fiduciaries to their clients. Learn more at Dynastyfinancialpartners.com.

About Pontera

Pontera (formerly FeeX) is a Fintech company on a mission to be the bridge to a better retirement for millions of Americans by enabling financial advisors to manage, trade and report on assets in held away accounts, including 401(k)s, 403(b)s, HSAs and more. The platform is designed to work across account types and integrate seamlessly into existing technology to help advisors improve their clients' financial outcomes. Founded in 2012 as FeeX, Pontera is headquartered in New York City. Learn more at Pontera.com.

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