Will my firm need to update our ADV and/or Customer Agreement to reflect the incorporation of Betterment for Advisors into my practice?
Yes, you will need to update your Form ADV Part 2A and most likely your Customer Agreement to reflect the incorporation of Betterment for Advisors into your practice. Since each situation is unique, please consult with your attorney or compliance officer.
Can Betterment for Advisors automate the signing of my agreement with my client?
Yes, you can provide PDF versions of your client agreement, Form ADV Part 2, and privacy statement to include as part of the electronic signup process a client undergoes with betterment. We also provide reporting in your dashboard about which versions your clients have agreed to, and when. You can read more about our agreement automation feature, including legal disclosures, here.
What relationship does the client have with Betterment?
Betterment acts as the sub-advisor to your client. You still remain the primary advisor to your client. When your client goes through the new account opening process, they will sign an agreement with Betterment directly as the sub-advisor, and, if you wish, an agreement with your firm directly as the primary advisor.
Describe the process your product uses to convert information provided by the client into a risk profile in the interview process.
The platform automatically recommends investment goals and associated recommended allocations for each such goal for new accounts established on the platform using the client’s age, information provided by the client during account creation regarding a particular financial goal, and the type of legal account.
Am I able to see an archive of electronically executed client agreements? If so, what does this look like?
If you enable the agreement automation feature to deliver a paperless account opening process for your clients, an archive of the date/time stamp and the version of the agreement that each client electronically signed is housed on the “Agreements” tab of the advisor dashboard. To learn more about our agreement automation feature, please see here.