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The Battle for DC Data Is Heating Up

The battle is on for data in the DC market — and the stakes are high.

At the second annual Envestnet Retirement Symposium last week in Chicago, it was clear that some record keepers are not ready to share participant or even plan sponsor data, citing privacy concerns. But MassMutual’s Tina Wilson had a different approach. “We are the custodians of the data and will share it with clients and partners as appropriate under the law to help improve outcomes for everyone,” Wilson declared.

But data means different things to different parties, and the fight over it may determine the ultimate winners and losers in the marketplace. So let’s look at the different markets:


  • Record Keepers — They are in the best position, since they hold much of the data and can use it to help plan sponsors and their advisors evaluate the health of the plans and the participants, further distinguishing what has become labeled a commoditized service. RKs can also use the data to customize services and communications to participants based on demographic as well as financial wellness. Often unacknowledged is that most record keepers are, after multiple acquisitions, relying on multiple systems that are antiquated and do not have a good handle on it themselves.

  • Advisors — They need data to manage investments and plans across multiple record keepers, but most importantly to cross-sell other products to participants while customizing their engagement. As elite advisors move down market, they will need systems to manage small plans efficiently.

  • Broker Dealers — Surprisingly, many BDs do not even know how many DC plans or assets their advisors manage or even which advisors are selling these plans, never mind which investments are being recommended. How? Blame it on omnibus record keeping and the fact that it’s hard to distinguish which mutual fund fees are part of a DC plan. Look for robo fiduciaries to crop up when the DOL’s conflict-of-interest rule takes effect, making data that much more important.

  • Fund Managers — It’s getting better, but without specific information on which of their funds are being sold by an advisor to a plan sponsor, they have no way of accurately calculating commissions for their reps. DCIOs also want to know which advisors and plans are using rival funds.


Of course, plan sponsors and participants have their own needs.

As we discussed in a 2014 NAPA Net the Magazine feature article, "Rumble in the Jungle," the fight over who owns the data is between record keepers, some of which want to use the data to sell their own financial products, and advisors backed by BDs that believe they own the client relationship and therefore the data that comes with it.

Game on.

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