The latest senior moves in North American wealth management.

Envestnet, the US-based New York-listed wealth management systems firm has worked with fintech house RiskPro to enable advisors to create portfolios with less regulatory risk.

RiskPro's proposal generation, portfolio construction, and automated risk surveillance software will function within existing enterprise workflows on the Envestnet unified advice platform, Envestnet said in a statement late last week. 

Portfolio managers face an increasingly laborious challenge keeping on top of regulations and compliance tasks to ensure that clients hold suitable investments. It is an area where modern technology is being used to manage masses of data and flag up risks as early as possible. 

"This is not just an important strategic relationship - this is something much bigger that will set a new, higher standard for investment account suitability and regulatory transparency," Nick Scalzo, co-founder and co-CEO of RiskPro, said.

RiskPro's Perpetual Suitability™ software will be offered to Envestnet's enterprise customers when the integration goes live in early 2021. Under this system, based on a client’s calculated “personal risk budget” (PRB), advisors affiliated with Envestnet can recommend investments with 98 per cent statistical probability that maximum risk tolerances will not be exceeded over any given 12-month period, Envestnet said.