Legg Mason announced Thursday that it acquired an 82 percent stake in Financial Guard LLC, an online investment advisory platform.

Salt Lake City-based Financial Guard offers clients customized financial advice through on online portal based on aggregated information. It offers its services to individuals, employers, brokers and other investment advisers.

It will operate as part of Legg's alternative distribution business, offering investment products from the Baltimore investment firm's nine affiliates.

Terms of the deal were not disclosed.

“We believe this investment in innovative technology and people is a valuable addition to Legg Mason's distribution efforts over the long term,” said Terence Johnson, Legg's global head of distribution, in a statement.

The deal comes as Legg, its business clients and others in the financial services industry prepare for the Department of Labor's new fiduciary standard, which begins to take effect next year. The new rule requires financial advisers to base their retirement investment recommendations on their clients' best interest. The rule applies to pre-tax retirement investing, such as 401(k) plans and Individual Retirement Accounts, commonly called IRAs.

The new rule will require firms and independent brokers to make significant administrative changes and technology upgrades to ensure they are in compliance. They must disclose information about the fees they charge, educate their clients about the new rules and keep detailed records of how advisers are compensated.

Firms also will need to track their investment recommendations more closely, so they are able to prove the advice was in clients' best interest.

Legg does not directly handle investment plans, but works with businesses that do. Financial Guard will help Legg's adviser affiliates meet these new requirements.

sarah.gantz@baltsun.com