Missouri has issued a warning to financial advisors regarding the use of popular wealth technology platforms that access client assets in accounts such as 401(k) plans and banks. According to WealthManagement.com, the Missouri Securities Division sent a letter to over 40 state-registered advisors, labeling the use of these tools, which rely on client log-in credentials to access accounts, as "dishonest and unethical."

The letter specifically addressed technology that allows advisors to access client accounts held in employer-sponsored retirement plans or other savings, bank, or brokerage accounts without the institution or plan administrator's knowledge or approval.

Madison Walker, communications and public relations specialist for the Missouri Secretary of State's Office, explained that the Securities Division sent the notice on May 23 to about 45 firms that either use these tools, have used them in the past, or have inquired about them. This issue came to the attention of Missouri regulators during discussions last year among members of the North American Securities Administrators Association (NASAA).

Using data from client accounts outside the advisor's custodian or brokerage firm helps advisors create comprehensive financial plans. Firms utilizing client log-in data with permission include Envestnet's Yodlee, Morningstar's ByAllAccounts, Fiserv's AllData (formerly CashEdge), and Pontera, which many firms use to access clients' workplace retirement plan data. Missouri's warning could impact these firms and others using similar technology.

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