Matrix Financial Solutions Releases Practice Guide Detailing ERISA Fiduciary
Rules, Business Considerations and Action Steps
New Fiduciary Responsibilities Create Opportunities for Financial Advisors
LAKE SUCCESS, N.Y., Jan. 28, 2013
LAKE SUCCESS, N.Y., Jan. 28, 2013 /PRNewswire/ -- Regulatory mandates,
economic uncertainty and dwindling retirement confidence among America's
workers are among the key factors shining a spotlight on the role retirement
plan fiduciaries play in helping workers save and safeguard retirement assets.
Along with the challenges and business risks that this increased scrutiny
brings come opportunities for financial advisors to grow their businesses.
Matrix Financial Solutions, a Broadridge Financial Solutions Inc. (NYSE: BR)
company, today released the practice guide ERISA Fiduciary Issues: A Practice
Guide for Advisors, which outlines what it means to be an ERISA fiduciary,
responsibilities that come along with the role, and how advisors can utilize a
practical action plan to capitalize on new opportunities.
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"As plan sponsors, companies and employers gain a heightened understanding of
their fiduciary obligations, they are looking for specialized support and
guidance from retirement plan advisors who help them construct and administer
their company's retirement plans. As a result, it's critical for advisors to
know when their plan sponsor clients are acting as fiduciaries and what steps
they must take to avoid breaching their duties," said Cindy Dash, COO, Matrix
Financial Solutions. "Advisors who enhance their value proposition and
structure their businesses with additional tools to help a plan sponsor with
fiduciary responsibility have a significant opportunity to grow those
Matrix's practice guide offers an in-depth look into the Employee Retirement
Income Security Act (ERISA) fiduciary rules and standards that may apply when
advisors are delivering investment advice to retirement plan clients. It also
details a three-step action plan to review their current business model, and
strengthen their value proposition through an expanded set of services
specifically designed to help plan sponsors. This provides advisors with a
roadmap to capitalize on the opportunities presented by the fiduciary
conversation that is going on in the retirement industry:
1. Assess Your Current Business Model
For fiduciary advisors, it is prudent to periodically self-audit and analyze
current practices both for regulatory compliance under ERISA and market
viability. For non-fiduciary advisors, a self-assessment can confirm that
their current practices do not render them an unintentional fiduciary and
can also help evaluate whether they would benefit from serving as
fiduciaries. The practice guide offers checklists for fiduciary and
2. Define and Communicate Your Value Proposition Relative to Fiduciary
A key step in building a business plan and sales strategy is defining and
clearly communicating a value proposition to current and potential clients.
Among the key components to include is special licensing or credentials,
honors or recognition, retirement plan training programs completed,
experience in working with other plan sponsors, and success stories.
3. Help Plan Sponsors Meet Their Fiduciary Duty
Very few plan sponsors really understand what ERISA demands of them. A great
step in building a strong relationship with a plan sponsor is to provide
them with educational resources, explain their fiduciary role and then help
them meet their obligations.
"The fiduciary responsibilities for plan sponsors and advisors are an
increasingly important focus for the industry, as well as the Department of
Labor. Advisors who proactively evaluate and adjust their current business
practices to become retirement specialists are in the best position to grow
their retirement businesses. At Matrix, we're dedicated to offering products
and services that provide advisors the flexibility to customize each plan – a
competitive advantage in this environment that benefits them and their
clients," added Ms. Dash.
Matrix released the guide at FSI's OneVoice 2013 conference taking place this
week in San Diego. Cindy Dash is speaking on a panel at the event entitled
"The Evolving Role of ERISA in the Independent Financial Advisor Channel" on
Tuesday, January 29 at 2:45 pm.
About Matrix Financial Solutions
Matrix Financial Solutions, a Broadridge Financial Solutions company, is a
leading provider of TrueOpen retirement products and services for third party
administrators, financial advisors, banks and other financial professionals.
Matrix serves more than 300 financial institutions with over $185 billion in
customer assets processed through its trading platform. For more information
about Matrix please visit www.matrixfinancialsolutions.com.
About Broadridge Financial Solutions
Broadridge is a technology services company focused on global capital markets.
Broadridge is the market leader enabling secure and accurate processing of
information for communications and securities transactions among issuers,
investors and financial intermediaries. Broadridge builds the infrastructure
that underpins proxy services for over 90% of public companies and mutual
funds in North America; processes more than $4.5 trillion in fixed income and
equity trades per day; and saves companies billions annually through its
technology solutions. For more information about Broadridge please visit
Linda Namias Maggie
Broadridge Financial Solutions Brainerd Communicators, Inc.
SOURCE Broadridge Financial Solutions
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