What is Dalbar's Computer Model Certification Program? The Dalbar’s Computer Model Certification provides firms that seek to comply with advice regulations for IRAs and 401(k) participants with the required credentials to comply with the regulations. Certificants receive a distinctive mark of quality in the form of the Dalbar Seal that differentiates the model from the hundreds of other that are non-compliant.
What are the Benefits of Participation?Gives Certificants the ability to:
- Leverage the Dalbar Rating in marketing and promotional materials.
- Attract new clients.
- Receive a report on the health of the existing client base and current satisfaction to ensure minimal attrition.
What are the Deliverables?
- Report of the analysis supporting the Certification
- Certificate of Achievement
- Pointers on how to best promote Dalbar Rating
What are the Prerequisites?Financial Professional must:
- Have a minimum of 5 years experience in the field of financial advice.
- Be a full time financial professional with a minimum of 100 active clients and at least 25 clients with tenure of 5+ years.
- Pass a background check.
What is the Certification Process?The following steps are required to obtain the Dalbar rating:
- Candidate completes application detailing qualifications and experience.
- Dalbar conducts a background check of the regulatory record of the candidate to determine if the individual qualifies for certification in compliance with SEC rules.
- Dalbar evaluates investment theory to determine if it is generally accepted
- Dalbarreviews investment performance and fees for reasonableness
- Dalbar tests the computer model using multiple scenarios for reasonableness and compliance with regulations.
- Candidate provides Dalbar with a complete list of clients.
- Dalbar verifies completeness and surveys a representative sample of clients to determine if ethical and quality standards have been met.
- Dalbar issues certification.
What is the Timing and Cost?Timing:
It depends on the scope and nature of the computer model. Certifications are renewable annually.
Cost:
The cost for certification depends on the scope and nature of the computer model and the uses to which the model will be put. Multiple versions are priced on request.