Managed accounts are just one of the asset classes which can be used as a QDIA. Managed accounts have been developed appearing to be a logical progression from the widely accepted Target Date Funds. Now, successful Target Date Funds find themselves in stiff competition with managed accounts. Managed accounts – for a fee – agree to provide 401(k) plan participants a professionally managed alternative via constructing a personalized portfolio tailored to the unique needs of each participant.
Doing so requires the collection, management and passing of sensitive personalized data. All who are responsible for retirement plan assets know that such tasks involve copious amounts of data. And where there is personalized data there are cybersecurity risks and data security concerns.
Fred Barstein, WealthManagement.com Contributing Editor of the RPA Edge Portal discusses managed accounts and security with Aaron Schumm, CEO and Founder of Vestwell. Click here to view their conversation.
Since the majority of plans on Vestwell’s platform utilize managed accounts, the firm is acutely aware of the requirements and responsibilities associated with the safe-keeping of qualified plan assets and the corresponding data.
