CEFEX Expands Assessment Guidelines to Meet Fee Disclosures


The Centre for Fiduciary Excellence (CEFEX) will expand its assessment guidelines for retirement plan sponsors, financial advisers and recordkeepers.



In response to Department of Labor (DOL) 404(a)(5) and 408 (b)(2) regulations, CEFEX said it would enhance its certification criteria to ensure that service providers properly disclose plan information, administrative expenses and investment information to plan sponsors, and that in turn plan sponsors disclose these fees to participants. It is a complement to the existing Global Standard of Fiduciary Excellence (GSFE) and American Society of Pension Professionals and Actuaries (ASPPA) Standard of Practice for Retirement Plan Service Providers.

“As the ERISA regulatory landscape evolves, CEFEX is working to ensure that both plan service providers and plan sponsors fully understand this regulation and are prepared to comply,” said Carlos Panksep, managing director of CEFEX.

The updated comprehensive checklists are now part of CEFEX’s detailed assessment methodology for plan sponsors and their service providers.

The checklists serve as guides for both groups to specifically itemize how to disclose plan information.

The DOL regulations address the fiduciary requirements for fee disclosure in participant-directed individual account plans. Regulation 408(b)(2) goes into effect July 1 and requires plan service providers to disclose the costs of services to plan sponsors, direct and indirect compensation, and fiduciary status.

Regulation 404(a)(5), which goes into effect August 30, requires plan sponsors to disclose expenses and investment results to plan participants.