Wealth Management

Portfolios and paperwork are automated. Value shifts to trust, complex structuring, and fiduciary documentation that stands up to scrutiny.

The Role Transformation

From To
Wealth Manager / Advisor Life-CFO & Trust Broker

Traditional wealth management is increasingly commoditized. Robo-advisors handle rebalancing. ETFs provide cheap diversification. The differentiator is no longer portfolio construction — it's governance, trust, and the ability to handle complex life situations.

With Governance OS, suitability monitoring runs continuously. When a client's circumstances change, when portfolios drift from targets, when concentrations build — exceptions surface before they become compliance problems.

Wealth Signal Types

The Wealth pack monitors these signal types:

  • Suitability metrics — Client risk scores vs portfolio risk profiles
  • Portfolio drift — Allocation deviations from targets
  • Concentration risk — Single-security or sector overweights
  • Tax events — Loss harvesting opportunities, wash sale risks
  • Client requests — Large withdrawals, life events, account changes
  • Correlation changes — Diversification breakdown during market stress

Example Scenarios

Suitability Mismatch: Conservative Client with Aggressive Portfolio Critical

The story: Mrs. Johnson (risk score 3, conservative retiree) inherited concentrated tech positions from her late husband. Her portfolio risk score is now 7.

Policy violated: Suitability Check Policy (risk delta > 2 points requires review)

Context visible:

  • Client risk score: 3 (conservative)
  • Portfolio risk score: 7 (aggressive)
  • Top contributors: NVDA (15%), TSLA (8%), ARKK (5%)
  • Last profile update: 6 months ago

Options presented:

  • Rebalance to Target Risk
  • Update Client Risk Profile
  • Staged Rebalancing Plan
  • Document Exception (Client-Approved Deviation)

Sample rationale: "Client is emotionally attached to inherited positions. Recommend staged liquidation over 6 months to reduce portfolio risk score to 4-5, with quarterly reviews. Tax implications to be discussed with client's CPA."

Executive Concentration Risk Critical

The story: Mr. Chen, a senior Apple executive, has seen company stock appreciation push concentration to 28% of his $10M portfolio. As a restricted insider, this requires careful handling.

Policy violated: Concentration Limit Policy (10% max single security)

Context visible:

  • Security: Apple Inc. (AAPL)
  • Current weight: 28%
  • Limit: 10%
  • Position value: $2.8M
  • Restriction status: Insider (10b5-1 eligible)

Options presented:

  • Systematic Liquidation (10b5-1 Plan)
  • Exchange Fund Contribution
  • Hedging Strategy (Collars/Puts)
  • Document Client Election

Sample rationale: "Recommend 10b5-1 plan to systematically reduce Apple concentration over 12 months. Plan should be established during open trading window and filed with compliance. Target: 15% concentration by EOY."

Large Withdrawal: Vacation Home Purchase Critical

The story: The Martinez family is purchasing a $2M vacation home. This requires liquidating 40% of their $5M portfolio. Only $150K cash is available.

Policy violated: Large Withdrawal Policy (>25% portfolio requires enhanced review)

Context visible:

  • Withdrawal amount: $2,000,000 (40%)
  • Available cash: $150,000
  • Liquidation required: $1,850,000
  • Target date: February 15, 2026
  • Tax lot analysis: Mixed short-term/long-term positions

Options presented:

  • Execute Full Liquidation
  • Suggest Partial Financing
  • Request Delay for Tax Planning
  • Staged Liquidation Schedule

Sample rationale: "Given 4-week runway to Feb 15, recommend staged liquidation prioritizing: (1) positions with losses for tax harvesting, (2) overweight positions, (3) lower conviction holdings. Preserve core equity positions and maintain emergency reserve."

Tax Loss Harvesting Opportunity High

The story: META position shows $140K unrealized loss. If harvested, this could generate $56K tax savings. Wash sale window requires attention.

Policy triggered: Tax Loss Harvest Policy (losses >$50K require review)

Context visible:

  • Security: META Platforms
  • Unrealized loss: $140,000
  • Estimated tax savings: $56,000 (40% bracket)
  • Wash sale exposure: Similar positions in other accounts

Options presented:

  • Harvest Loss, Replace with Similar ETF
  • Harvest Loss, Hold Cash 31 Days
  • Partial Harvest (50%)
  • Defer to Year-End Review

Compliance & Fiduciary Documentation

For wealth managers, documentation isn't optional — it's the difference between defensible advice and regulatory liability. Governance OS produces evidence packs designed for:

  • Regulatory examination — "Show me all suitability decisions for Q4"
  • Client complaints — "Why did we rebalance Mrs. Johnson's portfolio?"
  • Audit trail verification — Cryptographic hash proves integrity
  • E&O insurance claims — Decision rationale documented at time of decision

Fiduciary documentation at decision time. Not reconstructed after a complaint, but captured the moment the advisor commits to a recommendation.

Key Differentiators

Traditional Wealth Management With Governance OS
Quarterly suitability reviews Continuous suitability monitoring
Rebalancing on schedule Drift-triggered exceptions with context
CRM notes for documentation Immutable evidence packs with full audit trail
Tax review at year-end Continuous tax event monitoring
Compliance checklists Policy-driven governance with deterministic evaluation

KPIs for Wealth Practices

Governance OS tracks metrics that matter for compliance and practice management:

  • Suitability exceptions open — Critical metric for compliance
  • Concentration breaches — Number of clients over limits
  • Decisions made today — Advisor productivity
  • Time-to-resolution — How quickly exceptions are addressed
  • Exception volume trends — Policy tuning signals

Getting Started

The Wealth pack comes pre-configured with common policies:

  • Suitability Check Policy
  • Portfolio Drift Policy
  • Concentration Limit Policy
  • Tax Loss Harvest Policy
  • Large Withdrawal Policy
  • Correlation Monitoring Policy
  • Fee Change Notification Policy

These can be customized based on your firm's IPS requirements and regulatory obligations.

Ready for a demo? Try the interactive demo or join the waitlist for early access.