Morningstar Adds Broadridge Securities-Based Lending Tools to Advisor Workstation

Broadridge Financial Solutions’ securities-based lending tools are now integrated into the Morningstar Advisor Workstation, according to an announcement by the firms.

The integration offers financial advisors the ability to determine their clients’ borrowing potential and connect with Broadridge’s Wealth Lending Network partner banks to support their clients’ lending needs.

In addition, the collaboration will deliver single sign-on access to Broadridge’s predictive prospecting, sales support and educational capabilities via the Wealth Lending Network platform.

“Today’s advisors recognize the importance of offering expanded services to add value for their clients,” said Vimal Vel, chief product officer for enterprise solutions at Morningstar, in a statement. “Our collaboration with Broadridge equips advisors with a tool for advanced lending options, enabling them to provide a more comprehensive suite of services.”

Mike Alexander, president of Broadridge Wealth Management, said the expanded service offerings will help advisors strengthen their client relationships.

“This collaboration helps advisors respond to the growing demand for flexible, simplified and integrated financial solutions, including borrowing against their securities portfolio,” Alexander said.

Generally, securities-based lending solutions can help address clients’ liquidity needs, giving them an alternative to liquidating investment portfolios when emergencies or unexpected expenses arise. This can help clients to preserve their investment strategy while avoiding triggering potential capital gains taxes associated with selling investments.

There are also potential downsides for advisors and clients to consider, however, especially in times of volatility. For example, a significant decline in the value of the collateral assets may require a client to provide additional funds or securities to avoid a collateral maintenance call.

Credit: Adobe Stock