Retirement fund lineups are often constructed with the plan provider's revenue target as the foremost consideration. By offering proprietary mutual funds as well as non-proprietary funds under revenue sharing arrangements, participants may pay unnecessarily high fees for fund offerings.

Independent registered investment advisers function as fiduciaries to their clients and therefore have a legal obligation to act in the best financial interests of every client.

As co-fiduciaries to retirement plan sponsors, independent RIA’s provide guidance and counsel in investments, helping to strip away any conflicts of interest that often arise in 401(k) plans. Plan sponsors have access to a resource helping them design and implement an objective, transparent and low-cost plan significantly improving employee participation, and their investment performance.  

An independent RIA acting in a co-fiduciary capacity truly works as an ally for employees, and helps provide investment plan information by addressing investment selection, the importance of enrollment, and increasing contributions.

This trend is positioned to accelerate as leaders in government recognize the need to bring independent, conflict-free advice to the 401(k) market.

It is little wonder that during a period of great market volatility and uncertainty, clients have gravitated to the investment adviser, who is required to place the client's interests ahead of his or her own. In keeping with this relationship, plan participants should also be afforded a comparable opportunity.