Decisions, Decisions
What drove you to be an RIA? Although advisers in transition sometimes make big news, and there are plenty of advisers who move channels from a wirehouse to an independent broker/dealer or from an independent broker/dealer to an RIA, according to the data, most tend to move within their existing channel. According to some experts, this is because an adviser’s own preferences also should play a big part in a decision to change affiliations, and people with similar preferences tend to flock together. For more about this, check out “Personality Test.”
The Department of Labor (DoL) published the long-awaited final interim regulations on Employee Retirement Income Security Act (ERISA) Section 408(b)(2)—the statutory exemption allowing plan service providers to be compensated for their services without running afoul of ERISA’s prohibited transaction prohibitions. In “Taking Aim,” we look at those rules and examine what the new disclosures mean for advisers—and make no mistake, depending on whether a retirement plan adviser is an RIA, broker/dealer, insurance broker, or registered representative, the new rules will affect each type of retirement plan adviser differently.
Speaking of different advisers, a key distinguishing characteristic in most adviser business models lies in properly defining your target market: the type of clients you are most interested in, and best able to support. Failing to do so not only undermines your focus, it can cost you time and money. “Bees to Honey” discusses not only the importance of defining that target market, but also what you might want to consider when selecting your target retirement plan market, and how to find the right plans to fit that demographic.
A key element in successfully selecting a target-market lies in teaming with partners who are well-suited for that market. This summer, we again asked our readers to share their preferences and take part in our annual survey—gathering information about practice management, sales to and service of plan sponsors, as well as opinions about recordkeepers and investment managers. In this issue, beginning on page 48, you will find out which recordkeepers and investment managers led as adviser “favorites” in various categories, as well as insights on what advisers take into consideration when selecting recordkeepers or investment managers.
Speaking of client service, for the past seven years, we have conducted our search for the PLANSPONSOR Retirement Plan Adviser of the Year (and, for the past five, the Retirement Plan Adviser Team of the Year), highlighting not only the winners (and finalists) here, but also in sister publication PLANSPONSOR. As a reminder, nominations are now open for the 2011 Retirement Plan Adviser of the Year awards, and that means that plan sponsors and other industry professionals can (and already are) nominate advisers over the next several weeks. However, as Editor-in-Chief and fellow award judge Nevin Adams notes in this month’s “Dean’s List,” while it may be an honor just to be nominated, winners have to participate—and I hope that you decide to do so today. For those who do, I look forward to getting to know more about your business and your successes—and to sharing those stories with our readers. Trust me, it will make a difference in your business.
Editor’s Note: As we go to press, we’re making final preparations for the PLANADVISER National Conference in Orlando, Florida (in fact, several hundred of you are probably reading this at that conference). If you weren’t able to attend this year’s conference—or perhaps have never attended—I encourage you to keep it in mind for next year. You’ll also want to stay tuned to the PLANADVISERdash and www.planadviser.com for some exciting news about some unique post-conference opportunities.