Frequently when providers leave the retirement plan marketplace, they sell to vendors with a larger participant base who may be looking to provide scale or may be looking to enter a different market segment with the purchase. QP Consulting can provide an initial assessment to determine whether your new vendor is equipped to provide the services you need and whether your plan is a good fit for the services provided by your new vendor.

Revenue sharing can take many different forms. It can come in the form of 12b-1 fees, sub-transfer agency fees, shelf space arrangements, group annuity subsidies, and investment management subsidies. It is important for trustees to rely on a fee only advisor who can provide unbiased advice. Due to the increased complexity of qualified retirement plans, it is crucial to seek out an industry expert.

Plan Sponsors and Trustees should make sure they have a clearly defined process in place for gauging their retirement plans expenses, investments, and administrative procedures. The way to create an effective plan is to clearly map out and document your review process so employees trust the process in place and can focus on their savings rates and an appropriate asset allocation.

A broker sells investment products and is paid a commission for selling those products while an investment advisor is in the business of giving objective investment advice. An investment advisor also has a fiduciary responsibility to client’s and therefore has to put their interests first while a broker has to make sure the investment being sold is suitable for the investor. Investment advisors have to disclose any conflicts of interest and typically are compensated through a fee only arrangement versus the compensation being built into the product being recommended.