BlackRock data leak also ensnared Envestnet advisors
BlackRock’s data leak has reached Envestnet, a technology provider that serves financial advisors.
Envestnet was informed by BlackRock that some advisor information was inadvertently released, Estee Jimerson, managing director and head of asset manager distribution at Envestnet, said in statement.
“We are engaged with BlackRock to better understand the content and the advisors who were included in the document,” she said. “BlackRock is in the process of informing impacted firms and we are closely monitoring the situation.”
Bloomberg News first reported Jan. 18 that BlackRock inadvertently released names, email addresses and other information on about 20,000 financial advisors who do business with the firm’s iShares exchange-traded funds unit. That number includes the Envestnet-linked advisors. In total, Envestnet serves more than 92,000 advisors.
The leak included information on about 12,000 advisors who are affiliated with LPL Financial, the largest U.S. independent broker-dealer. LPL informed advisors over the weekend that BlackRock posted details about some of them on its website.
Envestnet’s disclosure demonstrates the extent of BlackRock’s slip-up, which the asset manager attributed to human error. In a statement issued Monday, BlackRock said it “recognizes the seriousness of the error and we deeply regret that it occurred. We always seek to treat the information entrusted to us with great care.”
The firm declined to comment further.
In November, Envestnet and BlackRock entered a partnership to provide financial advisors with technology. As part of that arrangement, BlackRock agreed to acquire an equity stake of about 4.9% in Chicago-based Envestnet.