More On Legal & Compliancefrom The Advisor's Professional Library
- How to Avoid Sabotaging Your Compliance Exam There is much more to compliance examination survival than knowing all of the rules. It helps to understand why the rules were put in placeand to recognize that examiners are not the enemy.
- Where Are We Headed? The ultimate compliance goal is to help ensure that everyone associated with an advisory firm acts ethically at all times. Advisors and RIAs should do the right thing, even when regulators are not looking over their shoulders.
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."