Morningstar has launched the Morningstar Best Interest Scorecard, designed for financial advisers to help clients make an informed decision on possible rollover options designed with their best interests in mind. This new tool demonstrates Morningstar’s ongoing efforts to prioritize investors’ best interests in light of changing regulatory requirements for retirement accounts, as well as evolving investor preferences and global trends around investment advice. The Best Interest Scorecard is available as an add-on feature in Morningstar® Advisor WorkstationSM.
“Investors today are demanding a more collaborative and transparent approach to investment advice, which is driving advisers to better demonstrate and document the value of their advice,” said Tricia Rothschild, chief product officer at Morningstar.
The Best Interest Scorecard is a comprehensive tool that enables advisers to assess the client’s current investment plan; changes the client could make within their current plan; and the new portfolio and service offering that the adviser is proposing for the client through a rollover or other process.
The Best Interest Scorecard also allows advisers to capture other client factors, such as appreciated employer securities, financial health of the investor and employer, or desire to work with an adviser, without weighing these factors explicitly in scores.
