More On Legal & Compliancefrom The Advisor's Professional Library
- Client Commission Practices and Soft Dollars RIAs should always evaluate whether the products and services they receive from broker-dealers are appropriate. The SEC suggested that an RIAs failure to stay within the scope of the Section 28(e) safe harbor may violate the advisors fiduciary duty to clients, so RIAs must evaluate their soft dollar relationships on a regular basis to ensure they are disclosed properly and that they do not negatively impact the best execution of clients transactions.
- Nothing but the Best Execution Along with the many other fiduciary obligations owed by RIAs, firms owe a duty to seek best execution of clients transactions. If they fail to do, RIAs violate Section 206 of the Investment Advisers Act.
As advisors face stricter Department of Labor rules on fee disclosure for retirement plans, ING U.S. Investment Management has launched a program to help advisors in the defined-contribution (DC) retirement market outshine the competition.
ING’s program, “The Opportunity to Articulate Your Value,” offers practical guidance on how advisors can create a value proposition and a service commitment that address the needs of plan sponsors.
“The defined contribution marketplace has become more competitive for advisors and planners in recent years,” said Mark Spina, head of intermediate distribution at ING U.S. Investment Management, in a statement. “This trend may accelerate in light of recent fee disclosure regulations by the Department of Labor that went into effect in July.”
The new rules for DC plans such as 401(k)s require advisors and service providers to disclose a range of direct and indirect fees. As a result, advisors are feeling more pressure to justify their fees and explain their services while promoting transparency with plan sponsors.
The program features:
- Recent ING U.S. plan sponsor research
- Best practices from industry analysts
- Step-by-step guidance on how to package existing services into distinctive value propositions and compelling service commitments
- Tips on how to match advisory services to evolving client needs
“This program is designed to assist retirement plan-focused advisors in the face of fee compression and consolidation of DC advisory relationships,” said John Uricchio, head of retirement and investment-only channel, in a statement. “The program seeks to help advisors separate themselves from the competition so they can reinforce their relationships and continue to successfully build their businesses.”
“The Opportunity to Articulate Your Value” is one in a series of ING U.S.’s “Retirement Perspectives” programs.
Read 5 Tips for Advisors to Benefit From a Post-Fee-Disclosure World at AdvisorOne.