SmartRIA has the ability to import data from Black Diamond. This document explains the process, the data that we import, and some important details regarding this functionality.
SmartRIA Features with Black Diamond Data:
User Credentials: Black Diamond has what is known as an “All Accounts” user and every firm has at least one. This person is normally an admin in Black Diamond, and can access all accounts. This person should enter their Black Diamond credentials into the Black Diamond integration screen in SmartRIA. This allows us to easily import all of the firm’s accounts. For security purposes, we don’t store the username and password, but instead store what is known as an “API token” that we receive from Black Diamond. This is a secure token that limits access and doesn’t allow anyone to log in to the Black Diamond website. It can only be used to access data programmatically.
Benefits to BD Customers: With one initial contact in a new BD firm and minimal effort, SmartRIA can begin a seamless, secure data transfer between our two platforms.
Accounts: Through SmartRIA’s Black Diamond integration, we securely receive all accounts that are configured by Black Diamond for a given firm. Broker Dealer or other accounts that aren’t desired to be sent to SmartRIA can be excluded within Black Diamond settings.
Clients/Households: When we created the initial integration with Black Diamond, they didn't have the concept of “clients” with the same attributes that we have in SmartRIA, such as address, birthdate, etc. However, it is possible to set up households, or a collection of accounts that are linked to a name by using Black Diamond “Portfolios”. Portfolios in Black Diamond are simply “groups of accounts” and don’t always equate to “households”. However, currently, if there is a portfolio with an attribute of “Client Visibility” of “True”, we count that as a household. Keep in mind it is only that- a name. This is typically a first and last name, or simply last name, or some other identifier that an advisor uses to group accounts together. When this is used, we create a household and automatically link all accounts to the household in SmartRIA.
Benefits to BD Customers: Compliance surveillance of client accounts is facilitated and simplified by grouping them into households and including information that’s useful for important requirements such as client Annual Reviews, and other critical compliance issues that are especially difficult to manage in large firms with thousands of accounts.
Linking accounts to advisors: When accounts are imported into SmartRIA, we use data to attempt to match the accounts with advisors. LPL, for example, links accounts to advisors with a “rep code” or “Hybrid Id”. In SmartRIA, we call that “Custodian Ids”, which can be configured by CCO roles under settings. When an account is imported from Black Diamond, if it has a Hybrid Id, we search for advisors who have that same Custodian Id configured in SmartRIA. If that account is found to be linked to a household/client, we automatically assign that client to all advisors with that Hybrid Id and the advisor(s) will have full access to that client and accounts.
Alerts Based on Black Diamond Data:
Trading inactivity alerts: If we are importing transactions from Black Diamond, we have the ability to create an alert if a trade( buy, sell, etc) hasn’t happened on a client account within predefined time ranges, typically one year. This is important because it prevents accounts from slipping through the cracks and not being actively managed.
High Cash Balance Alerts: We have the ability to use Black Diamond’s API to get account holdings for two dates. We use one date of today, and one date that goes a configurable number of days back to check (180 days, 365 days, etc. ). We then compare the cash balances on each date to see if they were both above a configurable threshold. If they are both above the threshold, we create an alert. Example: Account has cash balance of greater than 50% today and one year ago.
Both of the alerts listed above will go to the advisor to document how they plan to remediate the situation, or at least document why the condition exists. The compliance team can then sign off on the plan and easily prove oversight.
- Portfolio name. If there is a portfolio with an attribute of “Client Visibility” of “True”, we count that as a household and put the portfolio name in the SmartRIA client first name field.
- Account id
- Account name
- Advisor custodian id. Schwab calls these "Master Ids", LPL calls them "rep codes". These are used to associate the account with an advisor.
- Address (Line 1 with city, state zip)
- Open date
- Close date
- Registration type (Example: Rollover IRA, Living Trust, SWM II - Retirement, etc.)
- Target class (Example: Growth, Moderate Growth, Income with Capital Preservation, etc.)
- Units held
- Current value
- Asset class
- Account id
- Transaction date
- Transaction code and sub-code
- Unit cost