Advisors ‘Instant-Polled’ on Fees and Services

In a March 19 “super session” on establishing your value proposition at the 2017 NAPA 401(k) Summit, moderator Tom Kmak of Fiduciary Benchmarks used the conference app to poll the standing-room-only audience of nearly 400 advisors on eight questions over the course of the session.

Using the app, attendees who had installed it on their mobile devices used a polling feature on the app to select one answer from a multiple-choice list. The answers were tabulated in real time and displayed on a large projection screen within seconds. Here’s a look at the results.

How severe is advisor fee compression?
Nonexistent: 0%
Minor: 10%
Common: 55%
Intense: 35%

How important is your fee in landing a new client?
Not important: 0%
Minor factor: 21%
Major factor: 70%
Critical factor: 9%

What type of fiduciary status will you use going forward?
3(21): 74%
3(38): 26%
3(16): 0%

Do you build asset allocation models for your plans?
Yes: 54%
No: 46%

Do you provide advice to participants as a 3(38) fiduciary?
Yes: 19%
No: 81%

What creates the most extra work or liability?
Participant activity: 55%
Custom reporting: 17%
Sponsor work 16%
Fiduciary status: 10%

When is it right for an advisor to take credit for better participant outcomes?
Never: 2%
Sometimes: 33%
Often: 59%
Always: 6%

What percentage of your clients require a special level of fiduciary status or other services?
0-25: 46%
25-50: 40%
50-75: 12%
75+: 1%

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