Matrix Financial Solutions, a Broadridge Financial Solutions company, released on Monday a practice guide outlining a three-step action plan advisors can take to ensure they’re complying with fiduciary standards under the Employee Retirement Income Security Act (ERISA).
The guide, ERISA Fiduciary Issues: A Practice Guide for Advisors, was unveiled at the Financial Services Institute’s (FSI) annual conference in San Diego, and offers an in-depth look at ERISA fiduciary rules and standards that may apply when advisors are delivering investment advice to retirement plan clients.
The guide is particularly timely, given that the Department of Labor plans to repropose its rule to amend the definition of fiduciary under ERISA in July.
The three-step plan, which encourages advisors to review their current business model and strengthen their value proposition through an expanded set of services specifically designed to help plan sponsors, is as follows:
Assess Your Current Business Model
For fiduciary advisors, it is prudent to periodically self-audit and analyze current practices both for regulatory compliance under ERISA and market viability. For non-fiduciary advisors, a self-assessment can confirm that their current practices do not render them an unintentional fiduciary and can also help evaluate whether they would benefit from serving as fiduciaries. The practice guide offers checklists for fiduciary and non-fiduciary advisors.
Define and Communicate Your Value Proposition Relative to Fiduciary Support