401(k) firm Scarborough decides to farm out account-data management. Annapolis, Md.-based 401(k) provider Scarborough Capital Management is using Adhesion Wealth Advisors Solutions ' WealthADV performance-reporting and back-office services.

"Adhesion creates a client reporting package and on-line experience that is second to none," says Scarborough's investments v.p. Ian Arrowsmith. "They completely handle the daily account data management that we previously had to deal with internally, delivering that data through their state-of-the-market performance measurement and reporting services."

Enough of that

In response to the Pension Protection Act of 2006, which allows independent advisors to earn managemnent fee as fiduciary advisors to 401k plans, a sub-set of wealth advisors have been pursuing 401(k) business as a business opportunity rather than as a mere "administrative chore," according to Charlotte, N.C.-based Adhesion's CEO Michael Stier.

"The administrative chore was to incorporate the holdings into the overall financial plan, asset allocation strategy, and household reporting that a wealth advisor provides to their client," says Stier. "WealthADV Reporting handles the latter."

"Not every advisor has wanted to deal with the data collection task required to incorporate the 401K assets into the household reporting they provide clients," Steir reiterates. "But a number [of them] have and [some] even provide 'some advice' to clients on what to hold in the accounts."

Word of its Scarborough deal follows hard on Adhesion's win with Overland Park, Kans.-based National Advisors Trust Company to give affiliated RIAs access to its manager-model accounts and related support technologies. -FWR

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