Plan Sponsors Favor RFP Process in Hiring Advisors

A new report from the Retirement Advisor Council shows plan sponsors continuing to use formal RFP searches to find the right retirement advisor. According to the study, “What Type of Financial Advisor is Right for My Plan?”, plan sponsors ascribe the following benefits to the process:
• it's inherently fair
• it demonstrates that the plan sponsor acts responsibly in the exercise of its fiduciary duty
• it aligns plan goals with the services and business model of the selected plan advisor
• it provides an even clearer understanding of fees
 
In the study, plan sponsors indicated that advisors who fare best in finalist presentations keep their pitch brief and concise and offer an investment policy that matches that of the plan's investment committee. Plan sponsors regularly cite responsiveness, courteousness, humility, patience and firmness when necessary as qualities they want in an advisor. While cost is a factor, it's not a primary driver in advisor selection.
 
You can download the full report here.