ERISA Fiduciary Issues: A Practice Guide for Advisors, which outlines the opportunities as well as responsibilities of ERISA fiduciaries, has just been released by Matrix Financial Solutions, a unit of Broadridge Financial Solutions.
The guide explains the Employee Retirement Income Security Act (ERISA) fiduciary rules and standards that may apply when advisors deliver investment advice to retirement plan clients.
It also details a “three-step action plan” that advisors can use to review their current business model and, potentially, to expand the range of services they offer plan sponsors:
1. Assess Your Current Business Model. Fiduciary advisors should periodically self-audit and analyze their current practices both for regulatory compliance under ERISA and market viability. For non-fiduciary advisors, a self-assessment can confirm that their current practices do not render them an unintentional fiduciary and can also help evaluate whether they would benefit from serving as fiduciaries.
2. Define and Communicate Your Value Proposition Relative to Fiduciary Support. Advisors should emphasize their special licensing or credentials, honors or recognition, retirement plan training programs completed, experience in working with other plan sponsors, and success stories.
3. Help Plan Sponsors Meet Their Fiduciary Duty. Few plan sponsors understand what ERISA demands of them. Advisors can provide sponsors with educational resources, explain their fiduciary role and then help them meet their obligations.
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