Top 10 Questions about Compensation for Financial Professionals
New guide from the Principal Financial Group provides answers to common
DES MOINES, Iowa -- June 10, 2013
With the one-year anniversary of the new retirement plan disclosure regulation
nearing, financial professionals continue to face questions about the
reasonableness of fees they charge.
A new guide from the Principal Financial Group^® Top 10 Questions and Answers
to Help You Address Changes to Section 408(b)(2) of ERISA helps financial
professionals answer common questions from plan sponsor clients about
“The regulation sparked renewed interest in understanding the value received
from service providers—including financial professionals—and that is a good
thing,” said Tim Minard, senior vice president of distribution at The
Principal^®. “We all want plan sponsors to understand the fees they pay. By
being prepared to answer questions in advance, financial professionals can
spend less time alleviating plan fiduciary concerns and more time working with
clients to meet plan goals.”
The new guide helps financial professionals:
*Prepare for questions they may receive as a covered service provider if
the Department of Labor (DOL) audits the plan and asks the plan sponsor
questions around compensation and reasonableness of the service
*Clarify the different roles they play, dispel misconceptions and explain
the value and quality of their services.
*Ensure the fees charged by their firm are effectively evaluated against
those of comparable providers.
“The new DOL disclosure rules are an opportunity for financial professionals
to reiterate the importance of the services they provide and ensure their fees
remain competitive and transparent,” said Minard.
The new guide is the latest in a series of resources to help financial
professionals and their clients evaluate the reasonableness of fees, which
*Assessing Retirement Plan Value, a comprehensive online resource to help
understand and evaluate retirement plan fees, services and overall value.
*Fee Reasonableness Review Checklist, a sample template financial
professionals can share with plan fiduciaries to help guide them through
the evaluation process.
For more news and insights from The Principal, connect with us on Twitter at
About the Principal Financial Group
The Principal Financial Group^® (The Principal^®)^1 is a global investment
management leader offering retirement services, insurance solutions and asset
management. The Principal offers businesses, individuals and institutional
clients a wide range of financial products and services, including retirement,
asset management and insurance through its diverse family of financial
services companies. Founded in 1879 and a member of the FORTUNE 500^®, the
Principal Financial Group has $456.1 billion in assets under management^2 and
serves some 19.1 million customers worldwide from offices in Asia, Australia,
Europe, Latin America and the United States. Principal Financial Group, Inc.
is traded on the New York Stock Exchange under the ticker symbol PFG. For more
information, visit www.principal.com.
Insurance products and plan administrative services are provided by Principal
Life Insurance Company a member of the Principal Financial Group® (The
Principal®), Des Moines, IA 50392.
^1 “The Principal Financial Group” and “The Principal” are registered service
marks of Principal Financial Services, Inc., a member of the Principal
^2 As of March 31, 2013.
The Principal Financial Group
Terri Hale, 515-283-8858
Sonja Sorrel, 515-362-2431
Press spacebar to pause and continue. Press esc to stop.