Flourish Crypto Adds Support for Ethereum and Expands Compliance Resources with a Blueprint for Approaching Cryptocurrencies, Following Growing Demand from RIAs
Wealth Managers Can Now Offer Direct Ethereum and Bitcoin Investing Through Discretionary and Client-Managed Accounts
NEW YORK — December 2, 2021 — Flourish, a platform which provides innovative access to financial products that help Registered Investment Advisers (RIAs) secure their clients’ financial futures, today announced support for direct ethereum investing through Flourish Crypto, a turnkey cryptocurrency investing solution built for RIAs and their clients.
Additionally, Flourish and Perkins Coie LLP, a leading international law firm that has long been at the forefront of advising clients on financial technology, blockchain, and investment management, announced the release of a whitepaper that highlights key regulatory and compliance considerations for RIAs looking to engage with cryptocurrencies. Taken together, these announcements further empower financial advisors to bring direct cryptocurrency investing to their clients through Flourish Crypto.
Since its launch in September 2021, dozens of RIAs with an average AUM of approximately $1B have signed on to Flourish Crypto. Demand for additional cryptocurrencies such as ethereum, as well as additional regulatory and compliance resources, quickly emerged as some of the most highly-requested additions by current and prospective advisors.
“We’re seeing RIA demand evolve at an incredible pace. When we began discussing crypto with RIAs last year, advisor interest was overwhelmingly limited to bitcoin—and only for a limited number of clients,” said Ben Cruikshank, Head of Flourish. “Today, the majority of RIAs we speak with are interested in both bitcoin and ethereum, with many firms looking for tactical regulatory and compliance support. Forward-thinking RIAs don’t have to wait any longer; the tools and resources they need to bring cryptocurrency investing into their practice are available today.”
Flourish Crypto allows RIAs to offer either discretionary or client-directed accounts, a decision that can be made for all clients or on a client-by-client basis. Approximately 40% of RIAs have signed on to Flourish Crypto with the option to offer discretionary accounts—a decision which heightens regulatory and compliance implications for RIAs.
To help RIAs better understand their regulatory and compliance needs, Flourish engaged Perkins Coie to author a whitepaper entitled Investing Client Assets in Bitcoin and Other Cryptocurrencies: A Regulatory and Compliance Primer for Registered Investment Advisers. The whitepaper draws from the Investment Advisers Act of 1940 and its related regulations, as well as recent guidance from the staff of the Securities and Exchange Commission on cryptocurrencies, to provide an overview of key regulatory and compliance considerations for RIAs looking to invest their clients’ assets. The whitepaper is available at Flourish.com.
Flourish previously announced a partnership with Compliance Solutions Strategies (CSS) which further supports RIA compliance needs with compliance resources and expertise. Beginning next week, CSS will provide RIAs that sign up with Flourish Crypto with complimentary access to a comprehensive compliance packet, including representative Form ADV disclosures, template policies and procedures, and sample marketing and client disclosures. These resources will provide RIAs with a starting point for addressing legal and compliance considerations unique to their firm and operations.
“We’ve seen increasing attention around cryptocurrencies from key regulators, including the SEC,” said Jackie Hallihan, Executive Director at CSS. “By approaching cryptocurrencies with the same rigor that advisers approach other aspects of their compliance program, we believe there’s a clear path forward for RIAs that wish to bring cryptocurrency investing to their clients. We are thrilled to provide extensive, customizable compliance resources to the clients of Flourish.”
The Flourish Platform is already in use today by over 400 RIAs managing over $1 trillion in combined assets. Flourish Crypto is built on the Flourish Platform and is offered through Flourish Digital Assets and Paxos Trust Company, a highly-regulated, secure, and audited cryptocurrency custodian. Clients can open accounts online in minutes and have the ability to trade bitcoin and ethereum 24/7 with $100 minimums and unrestricted liquidity—meaning no complex fund structures, added fund fees, or subscription documents. Flourish Crypto’s simple, easy-to-use platform was built with the flexibility advisors need around trading, transfers, co-branding, client support, and key reporting and planning integrations.
Flourish is wholly-owned by Massachusetts Mutual Life Insurance Company (MassMutual).
For more information or to get started, please visit: www.flourish.com/advisors/crypto.
Flourish builds technology that empowers financial advisors, improves financial lives and retirement outcomes, and delivers new and innovative investment options to advisors. Today, the Flourish platform is used by more than 400 wealth management firms representing more than $1 trillion in assets under management. Flourish is wholly-owned by MassMutual. For more information, visit www.flourish.com.
Forward Looking Statements
This press release may contain forward looking statements that are subject to certain risks and uncertainties. Actual results, performance, or achievements may differ materially from those expressed or implied.
Flourish Crypto is a cryptocurrency investment account through which investors can trade cryptocurrencies and maintain custody of cryptocurrencies and U.S. dollars. Custody of Flourish Crypto accounts, including all assets in the accounts, and cryptocurrency trading services are provided by Paxos Trust Company, LLC (Paxos Trust Company) in accordance with the Paxos Terms. Paxos is a New York limited purpose trust company regulated by the New York Department of Financial Services. Website and other technology services and support for Flourish Crypto accounts are provided by Flourish Digital Assets LLC (Flourish Digital Assets) in accordance with the Flourish Crypto Terms. Flourish Digital Assets is registered in New York as a commodity broker-dealer. Cryptocurrencies held in Flourish Crypto accounts are not currently eligible for in-kind transfer to other custodians or cryptocurrency wallets. If a Flourish Crypto account is closed, the customer’s cryptocurrency positions will be liquidated and the customer will receive the U.S. dollar proceeds. Investing in cryptocurrencies involves a high degree of risk, as further described in the risk disclosures in the Paxos Terms and the Flourish Crypto Terms.