Drinker Biddle discusses fee reasonableness and the Fiduciary Advisor’s obligation to the plans and IRAs
In this white paper, prepared for Fiduciary Benchmarks by Fred Reish and Bruce Ashton of Drinker Biddle, they discuss fee reasonableness and the Financial Advisor’s obligation to the IRA and 401k plans they serve.
With the new DOL ruling, there will be heightened scrutiny on plan fees. The Plan Sponsor must retain its ERISA obligation while the Financial Institution and the Advisor must uphold their Best Interest Contract Exemption (BICE) obligation.
How to ensure this is happening is tricky though. And most importantly – determining how those plan fees relate to the quality, service and value being provided by the Financial Advisor to the Plan or IRA holder can be even harder to evaluate.