Two firms have teamed up to tackle the triple whammy of conflicts of interest, defined contribution plan costs and participant services that will be highlighted when the Department of Labor’s fiduciary rule goes into effect.
Recordkeeper North American KTRADE Alliance and registered investment advisor platform Folio Institutional have announced a partnership giving plan sponsors and their advisors new options.
Through Folio Institutional, sponsors and advisors can better control plan costs by moving away from proprietary investment products, mutual funds and ETFs. Instead, they can build portfolios of individual securities, avoiding the embedded costs that come along with packaged products. Folio Institutional also offers fractional share investing capabilities and model portfolios.
Through KTRADE, which provides open-architecture online retirement plan recordkeeping platform for 401(k), money purchase, 403(b), 457, defined benefit (including cash balance), MEP, nonqualified and other retirement plans, they will have access to a national network of 22 third-party administrators.
The partnership also provides sponsors and advisors with access to fiduciary liability management services.
“Today, advisors and plan sponsors are facing critical issues that will impact their ability to act on behalf of plan participants, manage costs and grow their business,” Greg Vigrass, president of Folio Institutional, said in a statement.
Vigrass added, “Fiduciary duty, conflict management scrutiny and the growing number of retirees are just some of the pressures causing them to review their DC plan’s administrative costs and investment products. This partnership delivers timely solutions that ultimately benefit plan participants.”
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