Address participation confusion

For participants, the new fee disclosure rules could be confusing, which happens to be plan sponsors' top concern regarding this regulation, according to the Callan 2012 Defined Contribution Trends Survey. Although participants have been paying these fees all along, many did not realize the associated costs, and it is likely there will be some dissent with the disclosure regulation, Kaplan says. This is the time for advisers to sit down with participants and explain the disclosure fees.

"People don't like change," Kaplan says. "If we can hold their hands for the first few statements for the ones that come out in the third quarter, and fourth quarter, after 12 months or so, it'll be business as usual; they'll be used to seeing it."

Don't let your clients have a moving experience

Once the fees are disclosed, plan sponsors might get the itch to shop around for another provider, but advisers can avoid this by documenting the value they bring. Kaplan recommends advisers simply list all of the services they perform – that includes everything from when the annual review is conducted to how often onsite visits are made. At the end of each year, advisers should also have checklists where they can mark off what they said they would do, what they did do and when they did it.

"Let them know and appreciate what you do to make it very hard to replace you," Kaplan says.

Help the employer piece it together

Many plan sponsors have multiple service providers, such as third-party administrators, financial advisers, accountants and attorneys. All of these providers are distributing fee disclosures, and with the information coming from so many directions, it can become confusing for plan sponsors, Kaplan says. This gives advisers the opportunity to prove their value by guiding plan sponsors through all of the noise.

"The plan sponsor needs to help organize and control these items," Kaplan says. "They have to take everything into account and plan sponsors really aren't geared up for this."

Make sure the windows aren't broken

Under the new guidance from the Department of Labor, an investment option is a considered an investment alternative regarding the participant fee disclosure rules only if it has been specifically identified as available under the plan, meaning fee disclosures are typically not required for investment options that participants choose through self-directed brokerage accounts. There was confusion about this rule, Kaplan says, and advisers need to familiarize themselves with this guidance as he expects the DOL to react sensitively to this.

"The Department of Labor has deep concerns on how the plan maybe meeting fiduciary responsibilities," Kaplan says. "Again, this is not a way for people to avoid the communication responsibility."