FINRA has recently given us all a new and improved Fund Analyzer tool. With the recent emphasis on Share Class selection, Regulation Best Interest (Reg BI) for broker-dealers, and the fiduciary duty of Registered Investment Advisers. Firms are encouraged to train their staff on using this new tool.

The new analyzer allows individuals to sort through and compare more than 30,000 products and run a wide variety of investment scenarios. The tool’s enhancements enable users to better calculate how a fund’s fees, expenses, and discounts impact the value of a fund over time.

Fund Analyzer Tool Features

A sample of the new features include:

  • Account aggregation;
  • Adding ticket charges;
  • Return over time analysis;
  • Trade frequency analysis; and
  • Trade cost and annual turnover.

They have also expanded the types of calculations that are available. You can evaluate across share class, different funds, different account types, different broker, and different platforms just to name a few. This new tool can be a good addition to your documentation regarding why your registered rep or advisor is making a recommendation and how they’ve determined the recommendation is in their client’s best interest.

MasterCompliance provides expert consulting, outsourcing, and implementation tools in planning and budgeting for your firm’s compliance responsibilities. If there are any areas where you would like to explore additional assistance or services, please contact us.