Legg Mason has agreed to purchase an 82% majority equity interest in online investment advisor Financial Guard for an undisclosed sum.
The online advisor will now operate as part of Legg Mason’s alternative distribution strategies business.
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"The investment is part of Legg Mason’s overall long-term strategy focused on creating choice for investors across investment capability, product and vehicle, and distribution," Legg Mason said.
Financial Guard’s aggregation technology helps advisors create a picture of clients’ overall financial positions as well as also suggest potential solutions to meet their investment goals of their clients.
Legg Mason stated that offering the technology to advisors and their clients will help financial providers grow their advisory business and comply with the new Department of Labor fiduciary standard that is scheduled to be effective from April 2017.
Moreover, the technology offered by Legg Mason and Financial Guard can be deployed seamlessly at distribution partner firms.
Legg Mason global head of distribution Terence Johnson said: "We believe this investment in innovative technology and people is a valuable addition to Legg Mason’s distribution efforts over the long term. Technology innovation is redefining consumer expectations and financial firms need a comprehensive, accessible, secure technology solution to serve their clients in this dynamic environment.
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By GlobalData"As an online technology platform that evaluates both active and passive funds, Financial Guard creates a complete digital solution for advisors and their clients. Together, we are well-positioned to help partner firms and their advisors by providing a simple and scalable platform coupled with compelling investment offerings."
