Advisor Search and Due Diligence Service Key Resource for Sponsors
The Retirement Advisor University (TRAU), in conjunction with 401kTV, TPSU and Inhub, is proud to announce the Advisor RFP Consultant (ARC) initiative designed to help defined contribution plan sponsors to select and/or benchmark their plan advisor. This service will help defined contribution (DC) plan sponsors not only find a new advisor but also ensure that fees paid to their current advisor are reasonable for the service provided.
Just as with other service providers (record keepers, investment managers, custodians etc.) plan sponsors have a fiduciary obligation to ensure that fees paid to a plan advisor are reasonable for the services rendered. This has become more apparent with recent court cases and the new DOL conflict of interest rule. Because an existing advisor cannot conduct an unbiased RFP process, plan sponsors do not have a local resource to help them through this process. Until now.
In partnership with InHub, the premier advisor RFP technology firm, TRAU (The Retirement Advisor University) will offer an advisor RFP service to plan sponsors through a network of strategically located ARCs made up of TPAs, CPAs, HR consultants and attorneys. The advisor RFP service will list local ARCs to be included in a special directory on 401kTV who can leverage the resources and technology of InHub for referred cases as well as with their own clients and prospects.
ARC’s will be required to earn their C(k)P (Certified 401(k) Professional) designation which includes three days at UCLA and 30 hours online training. The C(k)P is the most rigorous and well respected designation for 401k professionals in the DC industry and the only collaboration with a major university – ARC’s will also be required to go through additional training on best practices conducting an advisor RFP.
As with the C(k)P designation, which was created in part to help plan sponsors identify advisors that have the proper training and experience (there is a $30 million, 10 plan and 3 year requirement for advisors – see Advisor Directory), ARCs will be fully vetted, trained and reviewed annually. Though the RFP consulting agreement will be between the plan sponsor and ARC, a suggested range of fees will be provided based on the size of the plan and complexity of the RFP. In addition, by using an established RFP process developed by a third party like InHub, we are confident that plan sponsors will be well served.
To start a search for a new plan advisor or review of your current one now, go to Advisor RFP. Remember, even if you are satisfied with your current plan advisor, it’s important to go to market not just because it’s legally required but also because it is a good business practice for all third party vendors. Read about the process used by Dot Foods.
