Small-business owners either want to keep theirhands on things or they want to keep their hands off of things. Inboth cases, you have something to offer. (Image:Shutterstock)

On July 31, 2019, the DOL published a Field Assistance Bulletinregarding their final regulations on the establishment of 401(k)multiple employer plans (MEPs). It's not aperfect solution (although Congress may pass one by the time youread this). Still, it's a viable solution that makes the 401(k) MEPa more palatable option for plan sponsors too busy to take the timeto understand all the compliance intricacies of the 401(k)environment.

If you're not in the 401(k) MEP game, the curtain is closingfast. There may not be much you can do in some circumstances, butthere is something you can do in at least some cases.

Related: Small employers: Look before leaping into new MEP401(k) option

Christopher Carosa,CTFA, is chief contributing editor for FiduciaryNews.com, a leadingprovider of essential news and information, blunt commentary andpractical examples for ERISA/401(k) fiduciaries, individualtrustees and professional fiduciaries.

This recommended strategy is predicated on one very importantassumption: You have existing small-business 401(k) clients wholike you. I don't mean they like your product or your service; Imean they like you as an individual. And they'll be reluctant togive up that relationship unless the offer is too good to betrue.

Small-business owners either want to keep their hands on things(even when it makes more sense for them to delegate) or they wantto keep their hands off of things (even when it makes more sensefor them to stay involved).

In both cases, you can offer something to counter the lure ofthe 401(k) MEP when it comes calling.

If your small-business client insists on making all decisionswhen it comes to the company's 401(k) plan, then the 401(k) MEP maynot be the preferred solution. With a 401(k) MEP, the current plansponsor will be required to delegate nearly all duties.

They might, however, be momentarily swayed by the idea of alsodelegating a significant portion of their fiduciary liability.Still, they just don't want to give up control, and that's whatthey base their decision on.

You can swoop in and offer a compromise they might findappealing. By suggesting you take on a formal 3(21) role, you'll beoffering to act as a co-fiduciary in a way that takes some of theweight off their shoulders while allowing them to retain finalapproval authority on any suggestions you make.

On the other hand, let's look at those small-company owners whojump at the idea of delegation. You can't equal the benefit of the401(k) MEP, but you can come close.

This is where the closeness of your relationship becomes key.You'll need to convince your client the marginal value of a 401(k)MEP cannot make up for the cost of losing the comfort of theexisting relationship.

How do you shrink that marginal value so it is only marginal?You offer to act as a 3(38) advisor. Here, you not only take onmuch of the decision-making for the plan, but you also take on thevast bulk of the liability.

This, and an equally competent recordkeeper, will make it muchharder for the 401(k) MEP to influence the harried small-businessowner.

Read more: 

• Open MEPs put retirement industry roles on thebrink of change
• Managed accounts: Primed for adoption in the 401(k)market?
• The evolution of the 401(k) plan sponsor delegationdecision – Carosa