Advisers Pivotal 10 Years Out from PPA
Advisers are working with more plans today than they ever have—completing more services for more diverse types of clients than was the case prior to the full implementation of the Pension Protection Act. Source: Planadviser.com
Key Article Highlights:
Within the article, Jordan Burgess, a long time Fidelity executive at Fidelity Institutional Asset Management states that “advisers who are positioned for the future have moved well beyond the investment menu,” he explains. “They are proactive on plan performance, plan design consultation, managing fiduciary responsibility, minimizing and tracking costs. All of these things are very high on the list of demands from the plan sponsor post-PPA. It’s moved so far beyond just the investment menu.”
According to PLANADVISER’s survey data, after the PPA provisions in 2009, the number of plans regularly working with at least one adviser or consultant went from 62.5% to 71.7% today. Within the last year, the small/micro plan market has demonstrated substantial growth, moving from 52% in 2014 to 65.9% in 2015.
“We now see 70% of advisers telling us they’re willing to embrace the fiduciary role…” (Burgess).
In 2013, just 13% of plan sponsors were actively looking for a financial adviser. “Now, it’s jumped way back up to 23%, yet there is also this perception that advisers are doing a better job than ever” (Burgess).
According to Anthony Domino, Jr., an experienced DC Adviser with Associated Benefits Consultants, his firm “reviews all clients’ fee structures as their assets get bigger, to ensure their fees remain reasonable… looking ahead to 2026 and the 20 year anniversary of PPA: There will be far more flat-fee and per-project work being marketed by advisers.”