Understanding Reasonableness and Using Benchmarking to Avoid the Race to the Bottom
Rich Lynch, President of fi360
Aaron Borders, Regional Director & Vice President at Dimensional Fund Advisors
Matt Burt, Research Analyst for Ann Schleck & Co.
November 12, 2015
Since 408(b)(2) disclosure requirements came into effect, plan sponsors are in a better position than ever to carefully scrutinize plan fees and services. While access to more and better information is empowering for the client, it presents a challenge for advisors and plan service providers to demonstrate value. When evaluating fees, whether for plan services or for investment management, it is important that the least expensive option not be confused with the best or most reasonable.
In this session, we will first provide an overview of the fiduciary duty to monitor, understanding 408(b)(2) disclosure requirements, and a primer on the concept of “reasonableness” as it applies to both plan services and selecting investments. We will then take a look at recent advisor fee and service trends, how advisors can communicate the value they deliver to clients, and how benchmarking can help demonstrate “reasonableness.”