The program is designed to comply with pending Department of Labor regulations that would require plan fiduciaries to assess the reasonableness of the service providers’ compensation. In addition, RSPO helps advisers build a value statement and create a service disclosure beneficial for client retention and prospecting, American Century announced.
The RSPO consists of customizable, online forms that enable advisers to document disclosure. Sample reports from the online tool include a planning questionnaire, general plan information, service responsibility, and a due diligence completion form.“We think the RSPO is a useful client retention and prospecting tool for advisers to identify service opportunities and provide solutions. We also want to help make it easy for our clients to show ‘reasonableness’ in terms of their fees and compensation,” said Mike Jackson, vice president & DCIO divisional manager, Territory Sales for American Century Investments.