What is a model marketplace in the context of a Registered Investment Advisor (“RIA”)?

Definition: A model marketplace is the name commonly attributed to a resource that has compiled in one place (via technology) a selection of investment models that a financial advisor can select from and assign to a particular client account. Depending on the model marketplace, models are created by the provider of the resource, the financial advisor, and/or 3rd party asset managers.

When used in an RIA context: “The financial advisor uses a model marketplace to assign an investment model to each client account they work with.”

See also: Episode #136