SOURCE: XY Planning Network

FiComm Partners

September 19, 2016 12:00 ET

XY Planning Network Announces AdvicePay FinTech Solution for Compliant Retainer Billing

SAN DIEGO, CA--(Marketwired - September 19, 2016) -

  • XY Planning Network announces the release of AdvicePay, a payment processing solution that allows for compliant billing of recurring retainers, without triggering RIA custody rules.
  • AdvicePay is the first FinTech solution dedicated to payment processing specifically for financial advisors, allowing them to charge financial planning retainer fees to clients using ACH or credit cards.
  • AdvicePay will be available exclusively to XY Planning Network members without any platform fees, as a part of the XYPN member technology benefits.

Today at its #XYPN16 national conference, the XY Planning Network announced the launch of a new FinTech solution, AdvicePay, a payment processing platform that will allow XYPN members to charge monthly retainer fees to clients via bank account ACH or credit cards, in a compliant manner that does not trigger RIA custody rules.

"The XY Planning Network champions the monthly retainer model as a way to expand the accessibility of financial advice to Gen X and Gen Y clients, but finding payment processing platforms that can handle the unique custody and other compliance rules for RIAs has been challenging," said Alan Moore, co-founder of the XY Planning Network. "Ultimately, we decided that the best solution for our members was simply to become a FinTech developer and build the tool ourselves."

AdvicePay's unique payment approach ensures that financial advisors avoid custody of client assets by requiring all payments and changes in billing to be pre-approved by clients, who enter their own payment information directly so advisors never actually have control of client bank or credit card details. Instead, the AdvicePay platform operates as an intermediary to ensure client payment information is secure, while advisors have access to the key features necessary to actually execute their retainer billing process. AdvicePay can also handle one-time financial planning fees for a standalone financial plan or hourly engagement.

"With the Department of Labor's fiduciary rule looming, we are seeing rapid growth and adoption of XY Planning Network's innovative approach to financial planning," said Michael Kitces, co-founder of the XY Planning Network. "With growth to more than 300 members in just over 2 years, we see AdvicePay as the first of several future FinTech initiatives that XY Planning Network can pioneer to expand the reach of financial planning to future generations of clients and advisors."

The AdvicePay announcement was made as a part of the #XYPN16 national conference in San Diego, which also included a new FinTech competition intended to further stimulate new FinTech solutions to support financial advisors serving Gen X and Gen Y clients. The XY Planning Network now has 306 members, and the #XYPN16 conference included nearly 400 attendees in total, up from 170 in its inaugural 2015 year.

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About XY Planning Network

The XY Planning Network is the leading organization for fee-only financial advisors who want to serve their Gen X and Gen Y peers providing comprehensive financial planning services for a monthly subscription fee and without product sales or asset minimums. The Network offers a virtual community for new and established financial advisors who want to serve a younger clientele, and provides its members compliance support services, marketing support, business tools and templates, and a wide range of technology solutions.

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