January 27, 2012 11:24 ET

Dalbar Announces Fee Disclosure Relief

BOSTON, MA--(Marketwire - Jan 27, 2012) - Forthcoming fee disclosures for all ERISA plans will challenge service providers to demonstrate the value of their services in financial terms and challenge plan sponsors to demonstrate that the services are worth the money. These challenges could be highly disruptive for the service providers and plan sponsors who fail the challenge.

Dalbar announces its new Fee Disclosure Certification that values the intangibles of service, provides an independent evaluation to plan sponsors and creates a critical role for advisors and third party administrators (TPA).

Service providers with successful plans, high quality service and active investment management are evaluated on these factors, not merely the cost of the offering. Such evaluations permit those providers that do a good job for plan sponsors and participants to stand out ahead of those that only offer a cost advantage.

Plan sponsors receive certification that is evidence of the required evaluations as well as suggestions for improving their plans. Plan sponsors are expected to engage their advisors to implement improvements under separate or existing arrangements.

Advisors and TPAs receive free online training to support plan sponsors in their evaluations. Advisors and TPAs are expected to charge fees for this additional support since it goes beyond typical arrangements.

"The benefits of Fee Disclosure Certification creates a win, win, win," said Kathleen Whalen, Managing Director at Dalbar. "Service providers win by quantifying the value of their services, plan sponsors win by simplifying compliance and advisors/TPAs create a new service and revenue opportunity."

Details of the Fee Disclosure Certification is available at

Dalbar, Inc. is the financial community's leading independent expert for evaluating, auditing and rating business practices, customer performance, product quality and service. Launched in 1976, Dalbar has earned the recognition for consistent and unbiased evaluations of investment companies, registered investment advisers, insurance companies, broker/dealers, retirement plan providers and financial professionals. Dalbar awards are recognized as marks of excellence in the financial community.

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