5% is 100%

As many retirement advisors are keenly aware of, regulatory change seems to be coming to the 401(k) world.  Part of the reason that we’re paying attention to this space at Boulevard R, is because we’ll be rolling out a new product specificially for the retirement plan market in the coming weeks.

The new product is the Retirement Plan Compliance and Education Platform (Rce) and is designed to automate 404(c) compliance and deliver on-demand participant education to save advisors time and reduce their costs, while doing a better job of protecting plan sponsors from fiducairy liability and preparing participants for a secure retirement.

Last week I came accross an InvestmentNews article on the proposed 401(k) Fair Disclosure and Pension Security Act that stated, “independent advisers who would qualify under the rules account for just 5% of the total population of more than 200,000 retail advisers and registered representatives in the United States, according to estimates from The Tower Group Inc.”

If the 5% of advisors represent all the advisors who would meet the regulations and the remaining 95% of advisors will be forced to adopt new business practices the retirement plan market could get very interesting.

Now, it’s hard to tell if the conflicts of interest provision in the act will remain, particularly since it was already challenged by two democratic representatives in committee.  However, the committee chair, Rep. George Miller has close ties to the current administration and both see 401(k) plan reform as a major priority.

Stay tuned.  We’re planning on covering this in more detail as the legislation moves forward.

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