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WSJ Hits Providers on Fee Disclosures

In a scathing report on service provider 408(b)(2) disclosures published Tuesday, the Wall Street Journal detailed the problems that plan sponsors have in two key areas: first, understanding the fees disclosed by providers under the new regulations; and second, trying to determine whether they are reasonable. Most employers have questions about their fees after reading their disclosures, according to a survey by ShareBuilder. In fact, some providers have deliberately made their disclosures hard to understand. There is an opportunity for savvy plan advisors to help these befuddled sponsors understand the fees in the somewhat arcane disclosures and then benchmark them against industry averages. In fact, some firms like Dalbar are trying to create a business out of deciphering the 408(b)(2) disclosures. Heightened awareness, concern and confusion all create opportunities for a good advisor who is willing and able to help.

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