EAST GRANBY, Conn., April 15, 2013 /PRNewswire/ -- A report titled "What Type of Financial Advisor is Right for My Plan?" published by the Retirement Advisor Council, shows plan sponsors turning to formal RFP searches to find the correct Retirement Plan Advisor for their plan. Formal RFP searches have been firmly embraced by plan sponsors and are now the standard method for selecting a Professional Retirement Plan Advisor in many segments of the employer population.
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Plan sponsors in the study ascribe many benefits to conducting a formal RFP search for a plan Advisor. Compared to other approaches, a formal search process
- is inherently fair,
- demonstrates the plan sponsor acts responsibly in the exercise of fiduciary duty,
- aligns plan goals with the services and business model of the selected plan Advisor, and
- provides an even clearer understanding of fees.
This firsthand approach improves the odds of finding a specialized Advisor that satisfies plan sponsor needs in terms of investment approach, cost, and service offerings.
In the study, plan sponsors nationwide indicated the Advisors who fare best in finalist presentations keep their pitch brief and concise and offer an investment policy that matches that of the plan's investment committee. Plan sponsors regularly cite responsiveness, courteousness, humility, patience, and firmness when necessary as qualities they desire in their Advisor. While cost is as factor, it is not a primary driver in Advisor selection.
Asked to choose from among Advisor business models, plan sponsors base their decision foremost on the role of the Advisor in the delivery of participant education, communication and counseling. When asked to assign a value to 13 services many specialized Advisors offer, plan sponsors assign the greatest value to (1) the periodic review of investment options and (2) the assessment of plan compliance with applicable laws, regulations, and stated policies.
"Plan sponsors who engage in a deliberate process to select their plan Advisor can demonstrate their exercise of due diligence and attest to their fulfillment thereof. The template Advisor Search RFP, available free of charge on the Website of the Retirement Advisor Council, helps the Plan committee initiate the process while providing a solid, logical track to follow. We are happy to read the formal RFP process is becoming the standard method for selecting the right Plan Advisor," says Advisor James D. Robison, AIF®, White Oak Advisors
"It is comforting to read plan sponsors assign a value to all the services an Advisor specializing in retirement plans can deliver and appreciate differences between Professional Advisors. In the finalist stage, experience advising organizations like theirs is a major factor in plan sponsor decisions, as it should be," adds Advisor Gregg Andonian, AIF®, CFP®, Baystate Fiduciary Advisors, Inc.
The report is based on focus group discussions with employers from across the U.S. Research conducted by EACH Enterprise, LLC and commissioned by John Hancock Mutual Funds, MFS Investment Management, MassMutual Retirement Services, and Transamerica Retirement Solutions.
About the Retirement Advisor Council
The Council advocates for successful qualified plan and participant retirement outcomes through the collaborative efforts of experienced, qualified retirement plan Advisors, investment firms and asset managers, and defined contribution plan service providers. The Council accomplishes this mission by its focus on:
- Identifying duties, responsibilities, and attributes of the Professional Retirement Plan Advisor.
- Sharing our professional standards with plan sponsors who are responsible for the success of their plans.
- Providing collective thought capital to decision makers, product providers, legislators and the public.
- Giving voice to the retirement plan Advisor community.
- Tools to evaluate Advisors, ensuring the quality of services needed for successful retirement outcomes.
Learn more about the Council at www.retirementadvisor.us
For more information and/or interview requests:
Eric Henon
(860) 653-1705
[email protected]
SOURCE Retirement Advisor Council
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