Fee-based compensation models continue to grow for Ascensus, as the retirement plan and college savings service provider saw increases of more than three quarters of new plans falling into fee-for-service categories, the company reports.
Data from Ascensus’s recordkeeping platform found that use of this model continues to soar among advisers; a large surge since 2011, when only 19% of new plans on Ascensus’s platform maintained a fee-for-service compensation structure.
Ascensus believes that this continuous move toward transparent pricing will push more advisers to change their current businesses from commission-to fee-based models.
“Our unparalleled experience in this area can help advisers align their practices with new industry standards and the needs of their clients,” says Michael Narkoff, executive vice president of sales at Ascensus.
In addition to transparent pricing, Ascensus says it offers a “conflict-free pricing philosophy,” which guarantees that alterations to client investment menus will have no effect on recordkeeping fees, essentially allowing advisers to satisfy fiduciary duties, and at the same time, offer the best options for clients at lower costs.