VIEWS FROM THE EXPERTS
CRAIG ROSENTHAL
SVP, Sales and Service
Fiduciary Benchmarks
Solving For Fiduciary Rule And FINRA 13-45 Requirements
With disclosure comes transparency and a need to communicate value. The retirement industry provided a perfect example in 2012, when 401(k) service providers were required to disclose fees and services to plan fi duciaries. These disclosures led to fee transparency and a need for benchmarking to highlight the value provided for the fees. The forward thinking 401(k) service providers used benchmarking to protect their plan sponsors, improve participant outcomes and ensure reasonable fees were being paid for services rendered.
Was that experience a harbinger of things to come in the IRA space? Is the Fiduciary Rule the catalyst for history to repeat itself? Fiduciary Benchmarks believes it will and has built a suite of services to support Financial Advisors and other providers servicing IRA’s.
Here’s How:
IRA Rollover – Best Interest Determination – Will assist investors in evaluating an employer plan rollover, given Fiduciary Rule and FINRA 13-45 requirements.
The service includes a questionnaire for investor fi nancial evaluation, employer plan data gathering, IRA portfolio creation and comparison of investment/administration/advice fees and 16 different factors associated with each option. A simple one-page comparison is produced, enabling the service provider to generate a recommendation to the investor. The entire process utilizes a customizable compliance workfl ow.
IRA Benchmarking for Fee Reasonableness – We utilize our industry-leading experience with 401(k) benchmarking to offer a service where fees will always be considered alongside quality, service and value.
IRA Fee Comparison – Flat Fee vs Commission – While the industry will move many IRAs to a fl at fee comparison, many Broker/Dealers and RIAs know that a commission analysis is better in the long run. We are developing a one page client fee type analysis – ETA Q4 2017.
The IRA industry is undergoing massive change due to competition, regulation and the Fiduciary Rule. Why wait to be asked? Document your value today.
For more information, please visit www.fiduciarybenchmarks.com
Founded in 2007, FIDUCIARY BENCHMARKS (FBi), the industry leader for independent, comprehensive, informative and cost-effective benchmarking services for the defined contribution space has leveraged its existing patented method and technology to bring a robust and easy-to-use solution to the IRA marketplace. Our clients trust us to use data that has integrity, employ a method that is fair and independent, and to provide output that is simple, transparent and practical. FBi’s Solutions for IRA Fee Reasonableness and Best Interest Determination use the hallmark of our method which is to always consider quality, service and value when analyzing fees.
