John Hancock Chooses NextCapital for Digital Offering
John Hancock’s retirement business has partnered with digital advice service provider NextCapital to grow its 401(k) and IRA rollover business, according to a press release from NextCapital.
NextCapital’s platform provides automated portfolio tracking and management as well as financial planning and savings advice, the company says in its press release.
Peter Gordon, CEO of John Hancock Retirement Plan Services, says the company picked NextCapital to expand its “non-conflicted” advice.
Alois Pirker, research director of Aite Group, says in the press release that digital advice will be key for advice firms wanting to scale up under the Department of Labor’s fiduciary rule, which requires retirement brokers to put clients’ interests first and is scheduled to go into effect in April.
The new digital advice platform is scheduled to be rolled out over the next 12 months, according to NextCapital.
At the end of 2015 John Hancock signaled a push into wealth management, as reported previously. At the time, executives at its independent broker-dealer, Signator Investors, said they were aiming to expand its presence among financial advisors.
Meanwhile, NextCapital began expanding its services last February from defined contribution plans into IRA rollovers and the brokerage business.
NextCapital co-founder Rob Foregger told WealthManagement.com at the time that the firm would focus on larger wealth managers rather than small advice firms.