CHICAGO, Jan. 24, 2011 /PRNewswire/ -- Envestnet, Inc. (NYSE: ENV), a leading provider of innovative investment and practice management solutions for financial advisors, reaffirmed its commitment to helping advisors get ahead of regulatory changes and succeed in a new industry landscape through fiduciary practices that adhere to the highest standards of client service and care.  

"The U.S. Securities and Exchange Commission's ("SEC") new report issued on Saturday reflects the profound opportunity before advisors who adhere to a clear fiduciary standard of care," said James Patrick, Envestnet's Managing Director for Advisor Managed Programs. "Advisors who enhance their practices and more visibly align with the best interests of clients can solidify relationships, broaden their appeal to investors and deliver more comprehensive services."

As part of the Dodd-Frank financial reform signed into law in July 2010, the SEC was required to examine whether brokers who provide financial advice should follow the same fiduciary standard as registered investment advisors, based on the Investment Advisers Act of 1940. The SEC's report (http://www.sec.gov/news/studies/2011/913studyfinal.pdf) issued on Saturday, January 22, 2011, recommends creating a common fiduciary standard that would apply to brokers as well as advisors.

Envestnet provides an array of fiduciary support solutions and resources for advisors, including:

    --  Envestnet Advisor Suite™, an integrated set of solutions that empowers
        advisors to act in the best interests of clients by helping better plan
        and document activities in all client interactions;

    --  Fiduciary Oversight Notes, recently added to the Envestnet Advisor
        Suite, it allows advisors to enter explanatory notes any time a change
        is made to a client's account, further helping to make oversight more
        transparent and compliant;

    --  Unified Managed Household Capabilities that enable advisors to view all
        of a client's various financial accounts, across multiple custodians,
        helping advisors approach wealth management holistically and
        strategically;

    --  Fiduciary Opportunity Toolkit, available at
        www.thefiduciaryopportunity.com, which provides Envestnet's related
        survey and whitepapers.

Envestnet conducted a national survey of more than 1,000 investors and 500 advisors in 2010 to gauge their sentiment toward investor-advisor relationships. In that survey, 87% of investors believed their advisor "always acts with my best interests at heart," yet 73% said that they were increasingly cynical about financial services providers.  Most surveyed advisors said that they look after their clients' best interests and gave themselves high marks for explaining their professional responsibility to clients, but they were less confident that other advisors shared these attributes.

In addition, surveyed investors and advisors alike revealed confusion on how and when fiduciary standards apply.

"We hope the SEC's new report can help clear up some of the confusion among advisors and investors about what adherence to a fiduciary duty entails," said Mr. Patrick. "Our research has found that investors aren't waiting for legislation or regulation as the only meaningful response.  Regardless of how regulations change, the fiduciary standard is emerging as the optimal standard for client care today."

For more information about Envestnet, please contact Amiee Watts at 973-784-0025 or Amiee@jcprinc.com.

ABOUT ENVESTNET (NYSE: ENV)

Envestnet, Inc. is a leading provider of technology-enabled investment and practice management solutions to financial advisors. Envestnet's technology is focused on addressing financial advisors' front-, middle- and back-office needs. Envestnet is headquartered in Chicago with offices in Boston, Denver, New York, Silicon Valley and Trivandrum, India. The firm has over $126 billion in total assets served and more than 860,000 investor accounts.* For more information on Envestnet, Inc. please go to www.envestnet.com.

* Data includes assets under management and administration and licensing agreements as of 9/30/2010.

The opinions and guidance expressed in this press release reflect our judgment as of the date of writing and are subject to change at any time without notice. They are provided for general informational purposes only and are not intended to constitute legal, tax, securities or investment advice or a recommended course of action in any given situation. They should not be relied upon by the recipient in making decisions of a legal nature with respect to the issues discussed. Envestnet is not engaged in rendering professional legal advice or opinions. Information obtained from third party resources are believed to be reliable but not guaranteed. Past performance is not indicative of future results.

Contact: Amiee Watts

         JCPR

         973-784-0025

         Amiee@jcprinc.com

SOURCE Envestnet, Inc.