Page 30 - Investment Advisor June 2022

Wealth Management

“When clients come to us with particular needs — like a special
needs child or caring for a loved one in some way — it takes
more than just financial solutions to solve that problem.”

—Ken Cella, principal of branch development at Edward Jones

Digital asset adoption is happening and is which was moderated by Kenneth E. Bentsen Jr., CEO and
“retail-consumer led,” he said. president of SIFMA.
But the hurdle remains that “there is not clarity across the “We think there’s a really important role for technology to play,
industry yet” when it comes to crypto, he said. The industry especially with that next-gen investor,” Cella said. He pointed to
is counting on the Securities and Exchange Commission to the “tremendous investment” of $1 billion that Edward Jones
provide such clarity, he pointed out. recently said it’s making in technology this year. The goals are to
Fidelity recently started listing a Crypto Industry and enhance the “client experience” and also give “time back to our
Digital Payments ETF (FDIG). But the new ETF doesn’t pro- branch teams” and grow their capacity, he explained.
vide investors with direct exposure to cryptocurrency. The investment will impact Edward Jones’ wealth manage-
Fidelity was one of the first asset managers to engage with ment platform in a way “that allows us to get beyond traditional
cryptocurrencies. The firm introduced the Wise Origin Bitcoin financial tools and solutions for our clients,” according to Cella.
Index Fund I in 2020, but that was available only to qualified “When clients come to us with particular needs — like a
investors and requires a minimum $100,000 investment. special needs child or caring for a loved one in some way — it
Fidelity filed an application with the SEC in March 2021 to takes more than just financial solutions to solve that problem,”
launch a Bitcoin ETF, joining a growing number of other, though he explained. “And so we think there’s a much bigger role for
smaller, firms that had done the same. According to the March technology to play to enhance that relationship — not to replace
2021 filing, the Wise Origin Bitcoin Trust would track the perfor- it, certainly, but let’s face it, we’re in the digital age,” he said.
mance of Bitcoin as measured by the Fidelity Bitcoin Index PR. However, “what we know through research is that people
But the SEC rejected Fidelity’s application to trade the Wise value what an advisor does,” he pointed out. Edward Jones is
Origin Bitcoin Trust in January, just as the agency had rejected “looking to expand our definition of wealth management to
prior spot Bitcoin ETFs before it, based on concerns that the ETF really meet the needs of our clients … [and] in a lot of ways go
design could not prevent potential fraud or manipulation and beyond traditional financial services,” Cella explained.
could therefore pose a threat to investors and the public interest. The firm is “doubling down on how our clients interface
More recently, Fidelity said that, starting later this year, the with us because we know that there’s an intimate, deep rela-
23,000 or so firms that use Fidelity Investments to administer tionship with that face-to-face conversation with an advisor.
their retirement plans will have the option to offer Bitcoin We think we can actually leverage technology to augment that
through Fidelity’s core 401(k) plan lineup. That will make in a way that is … emotive and personal,” he added.
Fidelity the first major retirement plan provider to offer
Bitcoin in 401(k)s. The Need to ‘Tell Our Story’
Fidelity’s new workplace Digital Assets Account is a custom SIFMA’s retail-client initiative “aims to tell our story,” Cella also
plan account that will hold Bitcoin and short-term money said. There are nearly 380,000 financial advisors in the industry
market investments to provide the liquidity needed for the serving clients across the U.S. “If they didn’t exist, what would
account to facilitate daily transactions on behalf of investor, be the impact on society? It would be tremendous because we
according to the firm. know that our clients value advice,” he said.
For now, advisors should all become educated on digital “It’s a noble industry,” he explained, noting that “we’ve
assets if they haven’t already as the industry waits for the SEC [still] got to tell our story. ... If we don’t tell our story, who’s
to provide clarity, Durbin said. There was rapid adoption of going to?” SIFMA has been working on this, and “we’re emerg-
digital capabilities during the pandemic. “The Fidelity hope is ing with a tremendous narrative” to help get that message out,
we stick with it” after the pandemic ends, he added. Cella added.
A recent research study on investor satisfaction found that
‘Human-First’ “clients are very satisfied,” he noted. SIFMA also launched an
Edward Jones is “committed to being human-first,” Ken Cella, insights report that found there are still under-served com-
principal of branch development at the firm and vice chair munities across the U.S. that advisors should try to reach out
of the SIFMA board, said during the same panel discussion, to and serve.

28 INVESTMENT ADVISOR JUNE 2022 | ThinkAdvisor.com