A press release said this is to comply with new, pending Department of Labor regulations that require plan fiduciaries assess the reasonableness of the service providers’ compensation. In addition, the RSPO helps advisers build a value statement and create a service disclosure beneficial for client retention and prospecting, the announcement said.
The RSPO consists of customizable, online forms that enable advisers to document disclosure. Sample reports from the online tool include a planning questionnaire, general plan information, service responsibility and a due diligence completion form.According to Mike Jackson, vice president & DCIO divisional manager, Territory Sales for American Century Investments: “We think the RSPO is a useful client retention and prospecting tool for advisers to identify service opportunities and provide solutions. We also want to help make it easy for our clients to show ‘reasonableness’ in terms of their fees and compensation.”