More On Legal & Compliancefrom The Advisor's Professional Library
- Code of Ethics Rule The Code of Ethics Rule, found in Rule 204A-1, uses severe consequences for violation to help ensure investment advisors will do the right thing.
- Books and Records Rule Thorough and complete books and records enable RIAs to demonstrate that they have fulfilled their fiduciary obligations to clients and complied with applicable rules and regulations.
Fees have become the top reason retirement plan sponsors switch providers, outpacing poor service, according to a new Spectrem Group report. Nearly one-third (30%) of plan sponsors cited cost/fees as the primary factor precipitating a change in plan providers, according to the report, "DC Market Needs." This surpassed poor service (26%) and investment issues (12%), and represents the first time that fees have been cited by Spectrem as the number one reason study respondents gave for changing providers. In 2005, cost/fees finished third (18%) to both poor service (45%) and investment issues (26%). Fees also came in third in 1999 and 2002.
"The newfound focus on fees coincides with increased attention paid to fees and fee disclosure by the media and regulators over the past couple of years," said George Walper, president of Spectrem Group, in a statement. "Of course, sponsors' greater scrutiny of fees puts pressure on providers to reduce them and, consequently, may impact margins in an already competitive market segment."