Vestwell Announces Debut White-Label Partnership with Kovack Advisors, Inc.

Fully-Automated 401(k) Platform Provides Added Legal Protection Ahead of DoL Rule’s April Compliance Deadline

NEW YORK, NY — NOVEMBER 15, 2016 — Vestwell, the industry’s first and only fiduciary, white-labeled retirement platform for the RIA community and beyond, announced today that it has secured an advisory firm partnership with Kovack Advisors, Inc, an SEC registered investment advisor. Vestwell’s retirement plan management solution will be offered through The Kovack Choice 401(k).

Vestwell’s digital platform combines the best parts of automated investing with a human touch. In addition to allowing for automatic plan testing and enrollment of plan participants, and generating fully-compliant notices and agreements, the product suite includes investment services, trading, administration, custody, recordkeeping, and trustee services. Vestwell can also act as 3(38) and 3(16),taking on as much of the fiduciary responsibility as is allowable by ERISA and reducing legal liability related to retirement plan asset advisement.

“Advisors are concerned about the U.S. Department of Labor’s ‘fiduciary’ rule and want to reduce their risk of non-compliance. At Vestwell, we take on that risk on behalf of both advisors and plan sponsors, while also delivering a turnkey, time-saving solution that boosts efficiency to make offering retirement plan services good business again,” said Aaron Schumm, CEO of Vestwell. “We’re thrilled to be partnering with such a forward-thinking, industry-leading firm like Kovack Advisors on our white-label platform with them.”

“At Kovack Advisors, we are dedicated to providing our clients and affiliated advisors with the latest technology to both enhance our service offerings and quickly adapt to the latest DoL rules and regulations,” said Chris Mills, Executive Vice President of Kovack Advisors, Inc. “Vestwell’s innovative retirement platform retirement plan management solution makes it possible for advisors to offer defined contribution plans again, even if they previously shied away from them because of the hassle and risk of previous solutions.”

The Kovack Choice 401(k) platform is currently available to select advisor clients and will be available to all Kovack Advisor Inc.’s clients in the fourth quarter. For more information on Vestwell or to inquire about a white-label platform, please visit: http://www.vestwell.com. For more information regarding Kovack Advisors go to www.kovackadvisors.com and/or advisorinfo.sec.gov.

About Vestwell Holdings, Inc.

Vestwell Advisors, LLC, a 3(38) and 3(21) SEC registered investment advisory firm, is a wholly owned subsidiary of Vestwell Holdings, Inc., specializing in 401(k) and other defined contribution retirement investment management services. Built by an experienced team with an average of 18 years of financial technology experience and led by CEO Aaron Schumm, Vestwell assumes 3(38) and 3(16) fiduciary responsibility on the behalf of advisors and firms. Learn more at Vestwell.com.

This is not an offer, solicitation, or advice to buy or sell securities in jurisdictions where Vestwell Advisors is not registered. An investor should consider investment objectives, risks and expenses before investing. More information is available within Vestwell Advisors’ ADV.  There are risks involved with investing. Investors should consider all of their assets, income and investments. Portfolios are subject to change. All opinions and results included in this publication constitute Vestwell Advisors’ judgment as of the date of this publication and are subject to change without notice.

Vestwell Debuts Industry’s First Full-Fiduciary, White-Labeled Retirement Platform

Receives $4.5 million to create transparent, accountable, and automated 401(k) and defined contribution platform that gives financial advisors the ability to better service employers and employees.

NEW YORK, NY — SEPTEMBER 20, 2016Vestwell, the industry’s first and only full-fiduciary, white-labeled retirement platform for the RIA community and beyond, emerged from stealth mode today and announced $4.5 million in funding. The seed round of financing was led by FinTech Collective, with participation from F-Prime Capital, Primary Venture Partners and Commerce Ventures.

“Retirement savings is a $25 trillion market opportunity which we think is still best served by financial advisors. Vestwell’s mission is to provide advisors with a modern platform which reduces fees, increases transparency, and ensures compliance in a quickly shifting regulatory landscape,” said Aaron Schumm, founder and CEO of Vestwell.  “We’re thrilled to partner with our deep FinTech-focused investors, who share this vision to build out this essential platform.”

Vestwell’s turnkey solution modernizes the traditional and dated 401(k), 403(b), and defined contribution solutions by combining the best parts of automated investing with the human touch that only trusted advisors can provide. The full product suite includes investment services, trading, administration, custody, recordkeeping, and trustee services.

The recent U.S. Department of Labor’s “conflict of interest” rule changes the way investment advisors will have to run their firms.  While existing retirement solutions can put advisors—and companies—at risk, Vestwell assumes 3(38) and 3(16) fiduciary responsibility which ultimately reduces both financial cost and legal liability.

“With more than 50% of working Americans not contributing to a retirement plan, there is clearly a fundamental problem with the mix of offerings in the market today” said Brooks Gibbins, co-founder and Managing Partner of FinTech Collective. “Vestwell will allow companies to bring more employees into the fold in a guided and low cost manner, while helping advisors grow their assets and increase the quality of their revenue.”

“Vestwell’s platform is unique because it uses automation to empower advisors to offer competitive retirement portfolios while maintaining the human interaction that comes from years of relationship building,” said Benjamin Malka, General Partner of F-Prime Capital. “As fiduciary rules evolve, we see Vestwell not only protecting advisors but also providing them with the tools required to help their clients retire wealthier.”

“The Vestwell team’s proven track record, combined with a platform that offloads regulatory burden from both the RIA and the employer, will drive success for both parties in an increasingly challenging regulatory environment,” says Brad Svrluga, General Partner of Primary Venture Partners. “The opportunity to partner with Aaron Schumm, a repeat founder in the FinTech industry with unique insights into this complex market, was something we simply couldn’t pass up.”

About Vestwell, Inc.

Learn more at Vestwell.com and on Twitter @Vestwell.  Vestwell Advisors is a subsidiary of Vestwell, a 3(38) and 3(21) SEC registered investment advisory firm, specializing in 401(k) and other defined contribution retirement investment management services.

This is not an offer, solicitation, or advice to buy or sell securities in jurisdictions where Vestwell Advisors is not registered. An investor should consider investment objectives, risks and expenses before investing. More information is available within Vestwell Advisors’ ADV.  There are risks involved with investing. Investors should consider all of their assets, income and investments. Portfolios are subject to change. All opinions and results included in this publication constitute Vestwell Advisors’ judgment as of the date of this publication and are subject to change without notice.